17 jul: Test
24 jul: Bobler fra dybet fik hammerslag på rekordpriser ved nyligt afhold..
18-07-2012 09:17:00

UPDATE: Ericsson Earnings Miss Views as Poor Margins Weigh

Relateret indhold
Relateret debat
21 apr - 
@lpe123 Jeg har aldrig ejet en iPhone. De er i min opti..
21 apr - 
Noersterud ´Skægt nok så mener jeg at kursen på FPS er ..
21 apr - 
tommycarstensen Jeg er meget enig, der er mange forskel..

--Ericsson disappoints with bigger than expected drop in net profit

--Earnings hit by low-margin contracts and weak demand in Europe, China

--U.S. sales remains strong

(Adds detail, analyst comment.)

By Gustav Sandstrom and Sven Grundberg

STOCKHOLM--Swedish network equipment vendor Ericsson (ERIC) Wednesday reported a bigger-than-expected drop in second-quarter earnings with profits stunted by a high number of low-margin sales in Europe and slow demand in some markets, but said it expects improvement towards the end of the year.

Ericsson's net profit fell 64% to 1.11 billion Swedish kronor ($159 million) from SEK3.12 billion in the same quarter last year, with the closely watched gross margin down to 32.0% from 37.8% a year ago. Analysts polled by Dow Jones Newswires had expected net profit of SEK1.67 billion and a gross margin of 33.3%.

The weak numbers mirror problems cited by French peer Alcatel-Lucent SA (ALU.FR) Tuesday, which said it will miss its forecasts this year due to thin margins on big contracts and sluggish demand in Europe.

Ericsson has managed to maintain its position as the world's biggest network equipment vendor throughout the global financial crisis, helped by its strong position in the fast-growing U.S. market. Still, the company's profits have been hit in past months by a high proportion of low-margin sales, and as a result of reluctance by telecom operators in Europe to invest in new gear amid the ongoing financial crisis.

Revenue from services, which typically have lower margins than sales of new network equipment, made up a larger part of Ericsson's sales mix in the second quarter. Profit also suffered as a result of a large number of low-margin contracts for network upgrades in Europe, that Ericsson has taken on to regain market share in the region.

"The negative gross margin impact from the network modernization projects in Europe will start to gradually decline end 2012," the company said in a statement

Net sales in the quarter were down to SEK55.32 billion from SEK54.77 billion the same quarter last year, against expectations for SEK54.5 billion.

Ericsson's global services and support solutions businesses saw strong demand, but networks sales fell from a year earlier, mainly due to slow sales of CDMA technology equipment, lower activity in China, and slow third-generation (3G) technology sales in Russia, the company said.

Ericsson repeated that operators in Europe have turned increasingly cautious, as a result of the deteriorating economic situation in the region. Sales in Western and Central Europe tumbled 6% in the quarter compared with a year earlier.

North America remained strong, however. Sales climbed 5% year-on-year and the region remained a bright spot as carriers such as AT&T (T), Sprint Nextel Corp. (S), Verizon Wireless and Deutsche Telecom AG's (DTE.XE) T-Mobile USA invest heavily in increasing third-generation wireless data capacity and building fourth-generation Long Term Evolution networks.

The investments in 4G capability in the U.S. is largely due to the rapid pick-up of phones and tablet PCs enabled with high speed wireless data functionality, such as Apple Inc.'s (AAPL) new iPad that the company launched in March this year.

Ericsson's shares are down around 16% so far this year, underperforming a 3.7% rise in the wider Stockholm market amid concerns that its closely-watched gross margin will remain subdued. The shares Tuesday closed at 58.90.

Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

July 18, 2012 03:17 ET (07:17 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
21 apr
AAPL
Lars Gaba - jeg sagde for et par måneder siden inde i fingerprint gruppen   Jeg sagde at vi snart vi..
6
21 apr
AAPL
Den skifter nok bare navn til Ipad micro.... ;-) Jeg forstår ikke helt hvorfor folk vil have så stor..
2
20 apr
ERIC-B
Det store kursspring idag kan også have noget at gøre med at ZTE er blevet boycuttet i USA de næste ..
2
21 apr
AAPL
@lpe123 Jeg har aldrig ejet en iPhone. De er i min optik for dyre, for langsomme og for daarlige. Fa..
1
21 apr
AAPL
  tommycarstensen Jeg er meget enig, der er mange forskellige muligheder. Men der tegner sig alli..
1
21 apr
AAPL
Ja, forskellige analytikere har forskellige meninger - måske de stopper med X modellen, også selvom ..
1
20 apr
ERIC-B
Typisk i bobletid. ERIC taber ikke så meget som ventet og aktien stiger. ERIC er insolvent. Patenten..
1
20 apr
ERIC-B
@thch Jeg har den heller ikke. Jeg har haft kig paa den. Jeg oensker stadig ikke at eje den. Det er ..
1

Vestas-konkurrent: Møllepriser er faldet 13 pct. på årsbasis

23-04-2018 07:00:55
Den amerikanske Vestas-konkurrent GE Renewable Energy melder om fortsat prispres, hvilket selskabet forsøger at kompensere for gennem omkostningsreduktioner. I første kvartal faldt priserne på nye mølleenheder til ordrebogen med 13 pct. i forhold til samme periode sidste år. Det sagde finansdirektøren for General Electric, som GE Renewable Energy er en del af, Jamie Miller, fredag på en telekonfer..

Bavarian: Udenlandske kapitalfonde øger væddemålet på kursfald

20-04-2018 16:36:15
En række kapitalfonde har onsdag og torsdag øget sine shortpositioner i biotekselskabet Bavarian Nordic. Det viser en række indberetninger til Finanstilsynet. Torsdag har Capital Partners øget sin shortposition til 0,62 pct. af aktierne fra 0,54 pct. Ligeledes har AHL Partners øget sin shortposition til 1,31 pct. af Bavarian-aktierne. Tidligere havde kapitalfonden shortet 1,20 pct.Arrow Street øge..

Vestas-konkurrent sælger flere vindmøller - men prispresset fortsætter

20-04-2018 12:49:56
Den amerikanske Vestas-konkurrent General Electric (GE) har solgt flere vindmøller i første kvartal, men selskabet melder om fortsat prispres i branchen. GE havde i de første tre måneder af 2018 en ordreindgang på 936 vindmøller mod 589 i samme periode sidste år. Selskabet oplyser ikke størrelsen på de solgte møller, men skriver i en kommentar, at det har haft en stærk vækst i USA målt på megawatt..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Vestas-konkurrent: Møllepriser er faldet 13 pct. på årsbasis
2
OK18: Overraskede lønmodtagere venter på svar fra staten
3
Aktier/tendens: Topdanmark kan få hovedrolle i neutralt marked
4
Milliardsalg af L'easy vakler - citat
5
Beskæftigelse vokser og fortsætter rekordkurs i februar

Relaterede aktiekurser

Apple Inc 165,72 -4,1% Fald i aktiekurs
AT&T Inc 34,67 -0,4% Fald i aktiekurs
Ericsson - ADS each repr.. 7,755 16,8% Stigning i aktiekurs
Ericsson Telefonab L M s.. 65,16 -0,2% Fald i aktiekurs

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2018  Disclaimer Cookie- og privatlivspolitik
Aktieinformation leveres af Morningstar.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
23. april 2018 11:46:57
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: ReleaseBuild_20180417.1 - EUROWEB6 - 2018-04-23 11:46:57 - 2018-04-23 11:46:57 - 1 - Website: OKAY