Ericsson posts Q4 loss, but sales up

January 31, 2013 by Karl Ritter

Wireless equipment maker Ericsson posted a 6.46 billion kronor ($1.02 billion) loss in the fourth quarter due to a massive one-time charge, but said Thursday its sales rose 5 percent as mobile operators invested in broadband networks.

Ericsson shares rose 9 percent to 73.10 kronor in Stockholm after the report, which was stronger than many investors had expected, before ending the day up 7.6 percent at 74 kronor.

Stockholm-based Ericsson is the world's top supplier of the infrastructure needed to build mobile broadband networks. Its fourth-quarter loss compared with a net profit of 1.15 billion kronor in the same period in 2011.

But an even bigger loss had been expected after Ericsson announced last month that it would take a 8 billion kronor charge related to semiconductor manufacturer ST-Ericsson. That announcement came after Switzerland-based STMicroelectronics said it wanted out of the joint venture.

Ericsson said its fourth-quarter sales jumped to 66.9 billion kronor, from 63.7 billion kronor a year earlier, driven by investments in mobile broadband networks in North America in Japan.

"Throughout 2012 North America was our strongest market, driven by continued mobile broadband investments and demand for services," CEO Hans Vestberg said. "However, regions such as South East Asia and Oceania and Sub-Saharan Africa gradually improved during the year."

Ericsson last year pulled out of a joint mobile phone venture with Sony Corp., after struggling to compete with Apple, Samsung and Nokia.

Ericsson's competitors in the network infrastructure business include Alcatel-Lucent of France, China's Huawei and Nokia Siemens Networks, a Finnish-German joint venture.

Explore further: Ericsson reports profit leap, shares slump

0 shares

Related Stories

Ericsson reports profit leap, shares slump

July 21, 2011

Swedish telecom equipment maker Ericsson reported Thursday a 65 percent jump in second quarter net profit on strong sales but this still fell short of expectations and its shares slumped.

Sony Ericsson profits down in 3rd quarter

October 14, 2011

Mobile phone maker Sony Ericsson posted a break-even third quarter Friday - blaming the drop in earnings on higher taxes and lower margins - and announced that it is shifting its entire portfolio to smartphones next year.

Sweden's Ericsson says Q4 profits dropped

January 25, 2012

(AP) -- LM Ericsson, the world-leading wireless equipment maker in terms of market share, on Wednesday shocked the market by posting a much worse-than-expected fourth-quarterly result, mainly blaming operators for turning ...

Sales of handset arm lifts Sweden's Ericsson in QI

April 25, 2012

(AP) -- LM Ericsson, the world-leading wireless equipment maker in terms of market share, saw its first quarter profits more than double, largely on the back of proceeds made from the sale of its stake in handset maker Sony ...

Profits plunge in Q2 for Sweden's Ericsson

July 18, 2012

(AP) — Swedish wireless equipment maker LM Ericsson saw its second-quarter profits slashed to almost a third as sales of network infrastructure slowed in China and Russia and the company focused on the more stable — ...

STMicroelectronics to exit Ericsson joint venture

December 10, 2012

Europe's largest chipmaker, STMicroelectronics NV, said Monday it plans to exit its money-losing joint venture ST-Ericsson, as it struggles to manage a downturn in global demand.

Recommended for you

Cellphones can steal data from 'air-gapped computers'

July 28, 2015

Researchers at the Ben-Gurion University of the Negev (BGU) Cyber Security Research Center have discovered that virtually any cellphone infected with a malicious code can use GSM phone frequencies to steal critical information ...

Tech leaders warn over 'killer robots' (Update)

July 28, 2015

A group of top tech leaders, including British scientist Stephen Hawking and Apple co-founder Steve Wozniak, on Tuesday issued a stern warning against the development of so-called killer robots.

Where is solar power headed?

July 22, 2015

Most experts agree that to have a shot at curbing the worst impacts of climate change, we need to extricate our society from fossil fuels and ramp up our use of renewable energy.

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.