Reasons [not] to be cheerful

30 April 2009 By Una Galani Follow @ugalani

The Swedish telecoms equipment maker sounds more positive than its rivals. But there s little reason. Operating cash flow is negative and Sony Ericsson, its lossmaking mobile joint venture, needs cash. Investors are right to be spooked by Ericsson s willingness to stump up.

This content is for Subscribers only

Context News

Ericsson on April 30 reported weak first quarter results and chief executive CarlHenric Svanberg reiterated the outlook remained difficult to predict.

The Swedish telecoms network maker's sales fell 26% to Skr49.6bn, compared to the previous quarter. Stripping out currency effects implies an underlying decline of 30%. Ericsson attributed the fall to losses at Sony Ericsson, its lossmaking mobile joint venture. Net income fell to SEK4.1bn, down 44% from the previous quarter.

Sony Ericsson reported a 40% sales decline in the last quarter. At the time, it said it expects global handset demand to shrink at least 5% in 2009.

Earlier this month, Nokia said the outlook for network infrastructure and services was bleaker than expected and forecast the market to shrink 10% in 2009, twice its previous forecast.

Context News

Ericsson on April 30 reported weak first quarter results and chief executive CarlHenric Svanberg reiterated the outlook remained difficult to predict.

Sony Ericsson reported a 40% sales decline in the last quarter. At the time, it said it expects global handset demand to shrink at least 5% in 2009.

Earlier this month, Nokia said the outlook for network infrastructure and services was bleaker than expected and forecast the market to shrink 10% in 2009, twice its previous forecast.

Email a friend

Please complete the form below.

Required fields *