Ericsson reports second quarter results 2017

Via Ericsson

Jul 18, 2017

Jul 18, 2017 05:29 (GMT+0:00)


  • Reported sales decreased by -8% YoY. Sales, adjusted for comparable units and currency, decreased by -13% YoY. The RAN equipment market for 2017 is estimated to show a high single-digit percentage decline compared with previous estimate of -2% to -6%.
  • Gross margin was 27.9% (32.3%). Gross margin, excluding restructuring charges, was 29.8% (33.2%).
  • Operating income was SEK -1.2 b. Operating income, excluding restructuring charges was SEK 0.3 b., with a YoY decline in all segments.
  • Networks operating margin was 7%. Operating margin, excluding restructuring charges, declined to 10% (13%) negatively impacted by continued lower software sales.
  • IT & Cloud operating income was negatively impacted by less capitalization of development expenses QoQ and YoY.
  • Planned cost reduction activities will be accelerated, due to current market environment, to achieve an annual run rate reduction of at least SEK 10 b. by mid-2018.
  • The company sees an increased risk of further market and customer project adjustments with an estimated negative impact on operating income of SEK 3-5 b. for the coming 12 months.
  • Due to technology and portfolio shifts capitalization of costs will be reduced and is estimated to result in a net negative impact on operating income of SEK -2.9 (1.3) b. in the second half 2017, with no impact on cash.
  • Cash flow from operating activities was SEK 0.0 (-0.7) b.

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