ADVFN - Advanced Financial Network.
HOME» NYSE » A » T Stock Price » T Stock News

Att Share News

 At&t Stock Price
T Stock Price
 At&t Stock Chart
T Stock Chart
 At&t Stock News
T Stock News
 At&t Company Information
T Company Information
 At&t Stock Trades
T Stock Trades

Ericsson Earnings Miss Expectations as Poor Profit Margins Weigh

By Gustav Sandstrom and Sven Grundberg STOCKHOLM--Swedish network equipment vendor Ericsson (ERIC) Wednesday reported a bigger-than-expected drop in second-quarter earnings as its profitability was stunted by a high number of low-margin sales, but said it expects improvement towards the end of this year. Ericsson's net profit fell to 1.11 billion Swedish kronor ($159 million) from SEK3.12 billion in the same quarter last year, with the closely watched gross margin down to 32.0% from 37.8% a year ago. Analysts polled by Dow Jones Newswires had expected net profit of SEK1.67 billion and a gross margin of 33.3%. Ericsson has managed to maintain its position as the world's biggest network equipment vendor througout the global financial crisis, helped by its strong position in the fast-growing U.S. market. Still, the company's profits have been hit in past months by a high proportion of low-margin sales, and as a result of reluctance by telecom operators in Europe to invest in new gear amid the ongoing financial crisis. Revenue from services, which typically have lower margins than sales of new network equipment, made up a larger part of Ericsson's sales mix in the second quarter. Profit also suffered as a result of a large number of low-margin contracts for network upgrades in Europe, that Ericsson has taken on to regain market share in the region. Net sales in the quarter were down to SEK55.32 billion from SEK54.77 billion the same quarter last year, against expectations for SEK54.5 billion. Ericsson's Global Services and Support Solutions businesses saw strong demand, but networks sales fell from a year earlier, mainly due to slow sales of CDMA technology equipment, lower activity in China, and slow third-generation (3G) technology sales in Russia, the company said. Ericsson's shares are down around 16% so far this year, underperforming a 3.7% rise in the wider Stockholm market amid concerns that its closely-watched gross margin will remain subdued. The shares Tuesday closed at 58.90. Write to Gustav Sandstrom at gustav.sandstrom@dowjones.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stock News for Att (T)
DateTimeHeadline
05/29/201513:00:00AT&T Supports Texas, Oklahoma Storm Relief With $150,000 Contribution...
05/28/201520:40:03LTE Networks: What Investors Need to Know
05/28/201509:52:00"Connect Ability" Tech Challenge To Empower People Living With...
05/28/201509:41:02Statement of Changes in Beneficial Ownership (4)
05/28/201509:34:05Statement of Changes in Beneficial Ownership (4)
05/28/201509:00:00AT&T Digital Life Continues Efforts To Help Revitalize Communities...
05/27/201516:00:033 Reasons Microsoft Corp. Should Buy BlackBerry Ltd.
05/26/201517:00:02Undervalued Stocks in Telecom Worth Buying
05/26/201513:30:06Canadian Central Bank Expected to Hold Rates Steady
05/24/201511:40:02AT&T's DIRECTV Merger Signals International Growth Focus
05/24/201508:40:03Comcast Corporation's Customers Aren't the Only Ones Who Hate...
05/23/201509:44:02What Is John Malone's Net Worth?
05/23/201508:42:02What Is Rachael Ray's Net Worth?
05/22/201514:04:105 Things Cisco Systems, Inc's Management Wants You to Know
05/21/201511:00:00QuakeCon® And AT&T Reunite To Provide Ultimate Gaming Experience
05/20/201515:26:54AT&T Aims for Leading Market Spot in Mexico, Local CEO Says
05/20/201512:15:10What Is the S&P 500 Index?
05/19/201519:20:25Genesys in Early Talks with Potential Buyers
05/19/201518:51:08Call-Center Software Co. Genesys in Early Talks with Potential...
05/19/201505:30:00Smartphone Use While Driving Grows Beyond Texting to Social...

Att and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad