Ericsson Suspends Russia Business Indefinitely, Books $95 Million Provision -- Update
April 11 2022 - 5:32AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Swedish telecommunications company Ericsson AB said
Monday that it is suspending its business in Russia indefinitely
and will record a provision of 900 million Swedish kronor ($95.2
million) in the first quarter of 2022.
In late February, Ericsson suspended all deliveries to customers
in Russia to give it time to analyze the potential impact of
sanctions against the country.
"In the light of recent events and of European Union sanctions,
the company will now suspend its affected business with customers
in Russia indefinitely," it said Monday.
The company said it is engaging with customers and partners
regarding suspension, while Ericsson employees in Russia will be
placed on paid leave.
Ericsson has around 600 employees in Russia, with a main office
in Moscow, the company said in an emailed statement to The Wall
Street Journal.
Russia and Ukraine combined account for less than 2% of Ericsson
group turnover. The company is the major supplier of equipment to
telecom operators Mobile Telesystems and Tele2 AB in the country,
it added.
Ericsson said it will record the SEK900 million provision for
impairment of assets and other exceptional costs, with no staff
redundancy costs included. Around one third of this amount will hit
cash flow.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
April 11, 2022 05:17 ET (09:17 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.
Ericsson (NASDAQ:ERIC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ericsson (NASDAQ:ERIC)
Historical Stock Chart
From Apr 2023 to Apr 2024