Thursday, July 18, 2013

Ericsson Reports Flat Sales for Q2

Ericsson reported Q2 sales of SEK 55.3 billion, flat compared to last year, as operating income fell to SEK 2.5 billion, down 24% compared to last year.

Sales for comparable units, adjusted for FX, grew 7%. Reported sales were flat YoY, due to continued currency headwind,” said Hans Vestberg, President and CEO of Ericsson.  "There was continued high project activity in Europe as well as in North America where two large mobile broadband coverage projects have peaked in first half 2013. North East Asia had another challenging quarter following continued structural decline in GSM investments in China, FX in Japan and lower business activity in South Korea due to spectrum delays."

Some highlights from the quarterly report:

  • Networks sales increased 1% YoY, with strong growth in North America and Latin America as well as Western and Central Europe, while sales continued to decline in North East Asia. Networks sales were flat QoQ, with strong sales in Latin America. CDMA sales continued to decline rapidly both YoY and QoQ.
  • The structural decline in GSM sales in China and in CDMA sales in North America continued as anticipated. CDMA sales declined by -54% YoY and -31% QoQ to SEK 0.9 b.
  • Global Services grew 3% YoY, driven by continued high activity in Network Rollout. Professional Services sales declined -1% YoY, negatively impacted by FX effects. Sequentially, Global Services grew by 16% and Professional Services grew by 15%. Servicesrelated sales in North America were strong in the quarter.
  • Support Solutions sales declined -33% YoY and -4% QoQ. The YoY decline is mainly due to the divestment of Multimedia Brokering (IPX) in Q312 and continued decline in Media Management sales following the strong
  • The number of subscribers served by networks managed by Ericsson has passed the 1 billion threshold.

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