Arab Today, arab today ericsson hit by sharp drop in sales of networks
Last Updated : GMT 16:23:35
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 Ericsson cited an expected slowdown in sales of outdated CDMA equipment in North America and lower business activity in China, Russia and India for the drop in network sales, which fell 17 per cent year on year to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

arabstoday
arabstoday

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

 



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 Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today What's the reason and what you can do

GMT 05:44 2017 Sunday ,22 October

What's the reason and what you can do
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today IS caliphate's end 'in sight' after Raqa fall

GMT 14:48 2017 Sunday ,22 October

IS caliphate's end 'in sight' after Raqa fall
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 10:18 2017 Saturday ,21 October

How to do open-heart surgery

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
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