Ericsson: shares stumble again after disappointing report

(CercleFinance.com) - Swedish mobile equipment maker Ericsson shares were having a tough start of the day on Wednesday after the company issued another disappointing quarterly report.


The group said this morning that reported sales fell by 12% in the fourth quarter, also reporting a huge operating loss of 19.8 Swedish kronor.

As communicated earlier, asset write-downs finally amounted to 14.5 billion euros.

Oddo BHF analysts said that the group disappointed in terms of sales, opex and asset disposals, which explains why they maintain their "reduce" recommendation on the stock.

Indeed, Ericsson has decided to keep a 49% stake in its troubled Media Solutions unit, a pure-play video technology vendor for which One Equity Partners will now be the new majority owner.

Ericsson also plans to continue the in-house development of its Red Bee Media division, focusing on transforming the business into an "independent media services business."

Ericsson B shares are crumbling 8.4% at 51 Swedish kronor this morning: they have now dropped by more than 35% over the past year.

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