|
Newsletters
|
|
|
|
|
Wireless Developer Network - Daily News
Visit the WirelessDevNet Symbian DevZone
Today's News |
Yesterday's News |
Submit News |
News-"wireless" Top Stories! |
Around-The-Web
| Wireless DevZones!
Ericsson Expects Bigger 4th Qtr. Losses
URL(s): Ericsson
STOCKHOLM, Sweden (AP) -- LM Ericsson, the world's largest supplier of equipment for wireless phone networks, said Monday that losses more than doubled during the fourth quarter as sales fell 37 percent and it absorbed large restructuring costs.
The Stockholm-based telecommunications giant lost 8.3 billion kronor ($968.7 million) during the quarter ending Dec. 31, or 0.58 kronor (7 cents) a share, compared with a loss of 3.5 billion kronor, or 0.31 kronor a share, a year earlier.
The fourth-quarter loss also included 6.3 billion kronor ($735.7 million) in restructuring costs.
The figures mean Ericsson has lost more than 40 billion kronor ($4.7 billion) since the beginning of 2001.
Fourth-quarter sales fell 37 percent to 37 billion kronor ($4.3 billion), compared with 58.5 billion kronor in the year-ago period.
Ericsson and other telecom-equipment makers have been hit hard as operators have continued to cut back on spending on their current networks and push back plans for new, faster wireless networks in order to conserve cash.
``While we believe that the worst of the market decline is behind us, the market remains unpredictable,'' Ericsson chief executive Kurt Hellstroem said.
For 2002, the company lost 19 billion kronor ($2.2 billion), or 1.51 kronor (18 cents) a share. In 2001, the company had a loss of 21.3 billion kronor, or 1.94 kronor a share.
For the year, sales were down 31 percent to 145.8 billion kronor (US$17 billion), compared with 210.8 billion kronor in 2001.
The company said its cost-cutting initiatives are ongoing, including reducing the number of its workers to less than 60,000 by the end of the year. When it started in 2001, the company employed 107,000 worldwide. By the end of 2002, Ericsson employed more than 64,600.
In January, Ericsson agreed to sell its optoelectronics unit to Northlight Optronics AB.
In trading on the Stockholm exchange, shares of Ericsson were down more than 11 percent to 6.4 kronor (75 cents) a share.
|
|
|
|
