Ericsson Pushes Back 12% Operating Margin Target to Post 2020
November 08 2017 - 9:44AM
Dow Jones News
By Adam Clark
Ericsson (ERIC) said Wednesday that its targeted 12% operating
margin will take longer to reach than originally planned due to
currency movements and some weak markets.
The Swedish telecommunications company said it now aims to reach
the margin target later than 2020, having said in March that it
aimed to attain it after 2018.
Ericsson said this is due to the Swedish krona strengthening
against the dollar, a weaker-than-expected radio-access-network
equipment market and a challenging situation in its digital
services unit.
The company said that its target for 2020 is now sales of
between 190 billion Swedish kronor ($22.6 billion) and SEK200
billion, with an operating margin of at least 10%.
Ericsson said that the first results from its cost-reduction
activities and contract reviews are already visible, and it is
investing for the transition to 5G mobile networks.
Shares at 1351 GMT were down SEK0.25, or 0.5%, at SEK54.30.
Write to Adam Clark at adam.clark@dowjones.com;
@AdamDowJones
(END) Dow Jones Newswires
November 08, 2017 09:29 ET (14:29 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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