Source Pravda.Ru

Ericsson Net Income Plunges Down

Shares in L.M. Ericsson Telephone Co. (ERIC) fell sharply Friday after it said the economic downturn is now hurting some of its markets and net profit fell by more than half in the second quarter, weighed by restructuring charges and losses at its joint ventures.

At 0802 GMT, Ericsson was the biggest faller on the Stockholm market, trading down SEK6.30, or 8.1%, at SEK71.20 and underperforming a 1.1% drop in the benchmark OMXS30 index, Wall Street Journal reports.

However, net income plunged 56 percent to 831 million kronor ($111 million), or 0.26 krona a share, from 1.9 billion kronor, or 0.59 krona, a year earlier, Stockholm-based Ericsson said today in a statement. Analysts had anticipated profit of 2.1 billion kronor, the average of estimates compiled by Bloomberg.

The company’s joint ventures, ST-Ericsson and Sony Ericsson Mobile Communications Ltd., posted quarterly losses, paring 2.1 billion kronor from pretax profit. Network sales fell in constant currencies as carriers in emerging economies held back from buying equipment based on the global system for mobile communication, or GSM, the company said , Bloomberg reports.

Meanwhile, asked if it was considering leaving the joint ventures, Chief Executive Carl-Henric Svanberg said: "No. That is logical (that they make losses) with the position they have and the way the handset market is looking right now."

"Powerful efforts are being made (within the companies), and we don't expect any further weakening of the handset market." , Reuters reports.

Comments
Russians lose faith in their future, get ready for worse
Sanctions do not stop foreign countries from buying Russia's S-400 systems
Sanctions do not stop foreign countries from buying Russia's S-400 systems
Russians lose faith in their future, get ready for worse
Russians lose faith in their future, get ready for worse
Putin dislikes the idea of US army bases coming to Kuril Islands
NATO to build prestrike staging base in Georgia
NATO to build prestrike staging base in Georgia
The difference between Polish and Ukrainian nationalism is plain to see
Sanctions do not stop foreign countries from buying Russia's S-400 systems
Sanctions do not stop foreign countries from buying Russia's S-400 systems
Russia rips its economy apart with help from the West
Hillary in 2020?
NATO to build prestrike staging base in Georgia
Russia close to recognising Donetsk and Luhansk republics after Donbass elections
World honours bravery and courage of Russian pilot who killed himself in Syria
USA plays to pretend a mighty dragon that can no longer breathe fire
Russia unveils nuclear-powered interstellar spaceship
USA plays to pretend a mighty dragon that can no longer breathe fire
USA plays to pretend a mighty dragon that can no longer breathe fire
The Amazon and the New Conquistadores