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
The EBRD is making a €4 million equity investment in Geofoto, a Croatian geodetic company offering mapping, geodetic survey, photogrammetry, geoinformatics and aerial survey services, to support its drive to expand operations on international level.
more »
Nordea came out of 2009 in an even stronger position, despite one of the most challenging years for decades. Risk-adjusted profit increased 22% and our capital position and cost of funding are among the best in Europe.
more »
MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses.
more »
MEPs are deeply concerned about the long-standing and growing presence of al-Qaeda, and the deteriorating security, social and economic problems in Yemen, which they think could destabilise neighbouring countries.
more »
At the start of a new decade, Sub Saharan Africa is reeling from the effects of three major global crises – food, fuel and financial – that have reversed many of the economic achievements of the last 10 years and left some growth projections at levels below those of 30 years ago.
more »
The 5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area was jointly organised by the European Central Bank and the Reserve Bank of Australia, in cooperation with the Hong Kong Monetary Authority.
more »
The EBRD and European Fund for Southeast Europe are boosting the availability of financing to private businesses in Moldova with a $10 million loan to ProCredit Bank in Moldova for on-lending to micro and small enterprises.
more »
The EBRD is supporting the development of the retail infrastructure in Croatia with a €68 million loan to finance the construction of a modern shopping centre in Split, the second largest city in Croatia.
more »
The European Bank for Reconstruction and Development has agreed to sell its 15 percent stake in OAO Swedbank Russia to its parent and major stakeholder, Sweden’s Swedbank AB, a move which would give it full ownership of its Russian subsidiary.
more »
The Ministers of Industry took the first steps in San Sebastián today to make the electric vehicle a reality in Europe and agreed that European institutions, with the EC at the head, should lead a common strategy on electric vehicles.
more »