October 12, 2016 / 5:40 AM / a year ago

BRIEF-Ericsson issues Q3 profit warning

Oct 12 (Reuters) - Ericsson

* Ericsson announces preliminary Q3 earnings

* Says sales declined by -14 pct year-on-year to SEK 51.1 (59.2) billion, driven by slower development in segment networks where sales declined by -19 pct

* Says business result for Q3 2016 will be significantly lower than company expectations

* Says gross margin declined to 28 pct (34) following lower volumes in segment networks, lower mobile broadband capacity sales, and higher share of services sales

* Says operating income declined to SEK 0.3 (5.1) billion, including restructuring charges of SEK 1.3 billion

* Says negative industry trends from first half 2016, with weaker demand for mobile broadband, especially in markets with weak macro-economic environment, have further accelerated

* Says current trends are expected to continue short term

* Says continued progress in our cost reduction programs did not offset lower sales and gross margin.

* Says we will continue to drive ongoing cost program and implement further reductions in cost of sales to meet lower sales volumes Source text for Eikon: Further company coverage: (Stockholm Newsroom)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below