Ericsson Earnings Miss Expectations
April 21 2016 - 3:30AM
Dow Jones News
STOCKHOLM—Ericsson AB reported a 49% jump in first-quarter net
profit, below market expectations, on a 2% drop in revenue, and
announced a shake up of senior management, reflecting the tough
trading conditions in the telecommunications-equipment sector.
Ericsson, one of the world's largest wireless telecoms equipment
providers, said on Thursday that net profit rose to 1.97 billion
Swedish kronor ($242.6 million) in the three months to end-March
from 1.32 billion kronor a year earlier on a slide in revenue to
52.21 billion kronor from 53.52 billion kronor.
The results came in below analysts' expectations. Analysts
polled by FactSet expected a net profit of 3.13 billion Swedish
kronor, and sales of 54.52 billion kronor.
Ericsson also announced sweeping changes to its executive team,
appointing eight new members at once, as part of a corporate
reorganization. The "organizational and structural changes" were
necessary to "strengthen strategy execution to drive growth and
profitability," Ericsson said.
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
April 21, 2016 03:15 ET (07:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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