Swede nothings

25 April 2017 By Liam Proud Follow @liamwardproud

The Swedish telecoms kit maker made a $1.4 billion first-quarter operating loss after provisions and writedowns announced in March. New boss Borje Ekholm has the right strategy. But investors will still fret about further nasty surprises and a lack of progress on non-core sales.

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Swedish telecommunications equipment maker Ericsson on April 25 reported an operating loss of 12.3 billion Swedish crowns ($1.4 billion) for the first quarter of 2017, compared to a mean forecast of a 12 billion crown loss in a Reuters poll of analysts.

Chief Executive Borje Ekholm, who took charge in January, said on March 28 that the company would take between 7 billion crowns and 9 billion crowns in first-quarter provisions "triggered by recent negative developments related to certain large customer projects".

Ericsson’s net revenue was 46.4 billion crowns in the first quarter – lower than consensus expectations of 47.3 billion crowns and 11 percent lower year on year.

Stripping out the effects of restructuring charges and other one-off items, Ericsson’s operating profit was 1.1 billion crowns – a 73 percent fall year on year.

Ericsson shares were down more than 2.6 percent by 0921 BST.

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