Swedish telecoms equipment maker Ericsson is likely to report a second quarter loss in line with expectations
Published:
7 July 2001 y., Saturday
Swedish telecoms equipment maker Ericsson is likely to report a second quarter loss in line with expectations, but delayed deliveries of third-generation (3G) systems may force it to cut several hundred more jobs, an Ericsson source said on Friday.
The source said Ericsson management hoped that after losses in the first and second quarters, the third and fourth quarters would be in the black, but much depended on whether 3G mobile network delivery orders -- and therefore payments -- started coming later this year. Ericsson was winning new 3G orders, the source said, but operators were vague on delivery timetables.
In late Stockholm trade, shares in Ericsson were down 3.60 percent at 49.9 crowns.
Ericsson, which made a 4.9 billion crown loss in the first quarter because of losses on handsets and falling margins in systems, said in its Q1 statement that Q2 results would not be better. It will release Q2 results on July 20.
In the wake of this week's profit warning from British telecoms equipment maker Marconi , investors have been concerned more bad news could come from Marconi's peers -- such as Ericsson and Nokia .
To return to profit, Ericsson has launched a tough efficiency programme, which includes job cuts of up to 22,000 people or one fifth of its workforce. But unless the market rebounds in the second half, Ericsson has said it could end the whole year in the red.
But the shares have been hit by uncertainty over how soon demand for new systems from operators will pick up. Ericsson is a supplier of 3G telephony in 34 out of just over 50 announced contracts for high-speed 3G systems.
Šaltinis:
forbes.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Most EU countries continue to meet deadlines for incorporating single market rules into national law, contributing to economic growth and job creation.
more »
Japanese officials unveil their new bullet train, capable of travelling at speeds of 320 km per hour (198 miles per hour).
more »
The first International Security Technology Exhibition, KIPS 2011, will be held on 23-26 February 2011 in Kiev (Ukraine). The motto of the exhibition is ‘There can never be too much security!’
more »
The world's highest restaurant opens in Dubai, United Arab Emirates, located 400 metres above ground in Burj Khalifa, the world's tallest tower.
more »
The rights of consumers will be clarified and updated, whether they shop at a local store or buy goods on line, under new EU rules as amended by the Internal Market Committee on Tuesday.
more »
MEPs on Wednesday gave their green light for the Council to conclude an Interim Economic Partnership Agreement with Papua New Guinea and Fiji, two countries of the Pacific Region with significant exports to the EU.
more »
Report sets 10 priorities for tackling the bloc's main economic challenges, launching the first ever ‘European semester'.
more »
China's first capsule hotel ready to open its doors in Shanghai, aims to capture slice of booming leisure budget travel market.
more »
Declaration by Michel Barnier on the start of three new authorities for supervision.
more »
On 1 January, Estonia adopted the euro as its official currency and the changeover is running smoothly and according to plan.
more »