Ericsson: quarterly loss narrows on cost-cutting efforts

(CercleFinance.com) - Ericsson, the struggling Swedish telecoms equipment maker, cut its net loss in the first quarter due to cost-cutting measures.


In a press release issued this morning, the Stockholm-based company said it lost only 700 million Swedish kronor (about 67 million euros) in the past quarter, compared to a net loss of 10 billion Swedish kronor in the same period a year earlier.

"Our efforts to improve efficiency in service delivery and common costs are starting to pay off," said CEO Börje Ekholm.

Over this quarter Ericsson reduced its total workforce by over 3,000. Since last July, the firm has laid off almost 18,000 staff.

Reported sales decreased by 9% to 43.4 billion Swedish kronor the last quarter, the group said, on the back of lower revenues in Asia, although other markets showed growth, it added.

The Ericsson B share was up 14% at 63.3 Swedish kronor this morning on the OMX/Nasdaq market in Stockholm.

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