ERIC Ericsson

By Dominic Chopping

STOCKHOLM--Swedish mobile network giant Ericsson (ERIC) said Tuesday that its previously announced cost and efficiency program is on target to save 9 billion Swedish kronor ($1 billion) a year during 2017, but it now expects higher restructuring costs from the program than previously thought.

In conjunction with its capital markets day, it said restructuring costs of the efficiency program are now seen at SEK3.5 billion-SEK4.5 billion between 2015 and 2017, up from a previous expectation of SEK3 billion to SEK4 billion.

The company estimates that the total network equipment market between 2014 and 2018 will show a compound annual growth rate, or CAGR, of 1%-3%, the telecom services market is estimated to show a CAGR of 3%-5%, and the market for support solutions is forecasted to show a CAGR of 7%-9%.

Ericsson said that it aims to continue growing faster than the projected total addressable market CAGR of 2%-4% in 2014-2018, including growing faster than the market in its targeted areas.

-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @WSJNordics

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(END) Dow Jones Newswires

November 10, 2015 02:59 ET (07:59 GMT)

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