Ericsson: heavy second-quarter loss on charges.

(CercleFinance.com) - Ericsson said on Tuesday that it was not satisfied with its performance in the second-quarter, with sales continuing to decline and its losses increasing.


The Swedish telecoms equipment maker reported a second-quarter net loss of 1 billion Swedish kronor, compared with a net profit of 1.6 billion Swedish kronor in the same period a year ago.

At 49.9 billion Swedish kronor, reported sales were down 8% year-on-year.

Excluding restructuring charges amounting to 1.5 billion kronor, operating income was 300 million Swedish kronor, falling year-on-year in all segments.

In light of current market conditions, Ericsson has decided to accelerate its planned actions to reduce costs.

Still, the company sees an increased risk of further market and customer project adjustments, with an estimated negative impact on operating income of three to five billion Swedish kronor over the next 12 months.

After the news, Ericsson shares are down sharply (-7.2%) at 56.5 Swedish kronor in early trading on the Nasdaq Nordic this Tuesday.

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