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 financial and economic crisis has shown that reckless behaviour of banks and other financial institutions can have serious and costly consequences for Europe's economy and its people.
more »
Local services that create jobs and improve energy efficiency received a boost Thursday (2 September) when MEPs on the Industry, Research and Energy Committee approved plans for more investment.
more »
The European Commission approved the first financing decisions under the EUR 264 million 2010 allocation for the so-called Vulnerability FLEX mechanism to help the most vulnerable African, Caribbean and Pacific countries cope with the impact of the global financial crisis and economic downturn.
more »
The European Commission has today updated the list of airlines banned in the European Union to impose an operating ban on one air carrier from Ghana and to place operating restrictions on another air carrier from that country.
more »
The European Commission today approved an application from Denmark for assistance under the European Globalisation adjustment Fund (EGF).
more »
Algirdas Šemeta, EU Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, will open tomorrow an international conference at the Shanghai World Expo 2010 on building bridges to facilitate trade between China and the EU.
more »
Moldova is set to receive an EU grant of up to €90 million to help it through the financial crisis, following a vote at Parliament's Committee on International Trade on Monday.
more »
Important notice: since May 2010 business surveys data are classified in accordance with an updated version of the Nomenclature of Economic Activities (NACE rev. 2) causing a potential break in series at this date.
more »
75% of Europeans think that stronger coordination of economic and financial policies among EU Member States would be effective in fighting the economic crisis, according to the Spring 2010 Eurobarometer, the bi-annual opinion poll organised by the EU.
more »
The European Commission has extended until the end of the year the liquidity support scheme for banks in Slovenia.
more »