Friday, October 23, 2015

Ericsson Cites Slowdown in 4G Rollouts in China

Ericsson's overall sales for Q3 2015 increased by 3% YoY to reach SEK 59.2 billion (approximately US$6.98 billion).  Sales, adjusted for comparable units and currency, decreased by -9% due to lower sales in Networks, where the company cited a slowdown of the 4G deployments in mainland China. Network sales in North American have stabilized. This was partly offset by sales growth in Professional Services, where sales increased by 15% YoY.

Gross margin came in at 33.9%, down from 35.2% a year earlier. Operating expenses, excluding restructuring, decreased YoY to SEK 14.3 billion.

Ericsson said its global cost and efficiency program is on target to achieve annual net savings of SEK 9 b. during 2017.

See also