Arab Today, arab today ericsson hit by sharp drop in sales of networks
Last Updated : GMT 05:16:10
Arab Today, arab today
Arab Today, arab today

Ericsson hit by sharp drop in sales of networks

Arab Today, arab today

Arab Today, arab today Ericsson hit by sharp drop in sales of networks

Stockholm - Arabstoday

The world’s leading mobile telecoms equipment manufacturer Ericsson was hit by a sharp drop in sales of networks in the second quarter as carriers cut spending in the face of a global slowdown. Makers of network hardware, such as radio base stations, face lean times as major economies weaken, hitting telecoms operators’ revenues, and a decade-long price war continues to rage. Ericsson rivals Alcatel-Lucent and Chinese group ZTE have both issued profit warnings in the past week. Ericsson has also seen a shift in business mix to lower-value contracts and in recent quarters has focused on gaining market share at the expense of profitability, which again weighed on earnings in the April-June period. “The underlying business mix, with a higher share of coverage projects than capacity projects, was unchanged in the quarter and is expected to prevail short-term,” the company said in a statement. Ericsson added that the negative impact on the gross margin from hardware-heavy network modernisation projects in Europe would gradually start to decline towards the end of 2012. Earnings before interest and tax, excluding joint ventures but including restructuring charges, were 3.3 billion Swedish crowns ($470.9 million), against a mean forecast of 3.5 billion crowns in a Reuters poll. A year ago it made 5 billion crowns in core profit. “What was weak was Networks: both sales and result were clearly worse than expected,” Redeye analyst Gregor Johansson said. Ericsson cited an expected slowdown in sales of outdated CDMA equipment in North America and lower business activity in China, Russia and India for the drop in network sales, which fell 17 per cent year on year to 27.8 billion crowns, against a forecast of 30 billion crowns. China’s economic chill has lasted six quarters, while the euro zone is still mired in crisis and recovery in the US is stuttering. The lower proportion of network sales and the growth in lower-value service contracts hit the company’s gross margin, which fell to 32 per cent in the quarter from 37.8 per cent a year ago, against a forecast of 32.5 per cent. Ericsson shares were down by 3.8 per cent at 0850 GMT. From gulftoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today ericsson hit by sharp drop in sales of networks Arab Today, arab today ericsson hit by sharp drop in sales of networks

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 14:50 2017 Monday ,20 February

Energy Market Research

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday