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 supporting the modernisation of transport infrastructure in Serbia with a €150 million sovereign loan to finalise the construction of a new motorway section along the strategic Corridor X.
more »
The Executive Board of the International Monetary Fund (IMF) today completed the first review of Romania’s economic performance under a program supported by a 24-month Stand-By Arrangement (SBA).
more »
The Executive Board of the International Monetary Fund (IMF) today approved a three-year, SDR 13.57 million (about US$21.5 million) arrangement under the Poverty Reduction and Growth Facility (PRGF) for the Union of the Comoros.
more »
The Executive Board of the International Monetary Fund (IMF) today completed the second review of Mongolia's economic performance under a program supported by an 18-month Stand-By Arrangement (SBA).
more »
Parex banka has established a subsidiary, SIA NIF (“Nekustamo īpašumu fonds”, or “Real Estate Fund”), which will professionally manage assets that are not related to the Bank’s core business.
more »
In his address at the Lithuanian-Belarusian Business Forum “Belarus and Baltic States: new prospects for cooperation”, Prime Minister Andrius Kubilius has pointed out that Lithuania sees Belarus as creating its future in Europe...
more »
JDRF Employs VoIP and Web-Based Video Collaboration Enabled by Cisco for More Effective Teamwork Among Employees and Constituents.
more »
On 16 September 2009, AB Bank SNORAS group finished the transaction during which it purchased from AB “Invalda” with its own funds 100 per cent of the shares of AB “Finasta įmonių finansai”, managing AB Bank “Finasta”.
more »
Federal Reserve Chairman Ben Bernanke that the worst U.S. recession since the Great Depression was probably over, but the recovery will take time.
more »
Growth expected to return in the second half of 2009. Forecasts are still uncertain but fears of a severe, prolonged recession are fading.
more »