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Ericsson cutting extra 1,500 jobs | Ericsson cutting extra 1,500 jobs |
(about 1 hour later) | |
Swedish telecoms equipment group Ericsson has said it is cutting an extra 1,500 jobs, as it reported a 92% fall in quarterly profits. | Swedish telecoms equipment group Ericsson has said it is cutting an extra 1,500 jobs, as it reported a 92% fall in quarterly profits. |
Hit by the cost of its restructuring work, and a continuing drop in orders, its net profit for October to December was 314m kronors ($43m; £27m). | Hit by the cost of its restructuring work, and a continuing drop in orders, its net profit for October to December was 314m kronors ($43m; £27m). |
This compares with 3.89bn kronors for the same quarter in 2008. | This compares with 3.89bn kronors for the same quarter in 2008. |
The latest 1,500 job cuts come on top of the 5,000 positions that the company shed last year. | The latest 1,500 job cuts come on top of the 5,000 positions that the company shed last year. |
They're saved by cost cuts, and that will probably be the case in 2010, so it's in no way a disaster Michael Andersson, Evli Bank | |
Ericsson said the cost of its continuing restructuring work totalled 4.3bn kronors between October and December, and 11.3bn kroners for 2009 as a whole. | Ericsson said the cost of its continuing restructuring work totalled 4.3bn kronors between October and December, and 11.3bn kroners for 2009 as a whole. |
Its sales for the last quarter of 2009 fell by 13% to 58.3bn kroners, as global spending on telecoms equipment continued to fall, and as Ericsson faced increased competition from China's Huawei. | Its sales for the last quarter of 2009 fell by 13% to 58.3bn kroners, as global spending on telecoms equipment continued to fall, and as Ericsson faced increased competition from China's Huawei. |
Ericsson's latest results were much worse than market targets. | |
Analysts had expected the company to report a quarterly net profit of 3.23bn kronor. | |
For 2009 as a whole, Ericsson saw its net profit fall 67% to 3.7bn kronor. | |
"You know, the market is weak, but one might have hoped for some recovery in quarter four," said analyst Michael Andersson of Evli Bank. | |
"They're saved by cost cuts, and that will probably be the case in 2010, so it's in no way a disaster." |
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