Latest news with #BorjeEkholm
Free Malaysia Today
4 days ago
- Business
- Free Malaysia Today
Currency headwinds wipe out Ericsson's sales gain
Ericsson shares shed more than 3% in morning trading in Stockholm and are down more than 17% from the start of the year. (EPA Images pic) STOCKHOLM : Swedish telecommunications equipment manufacturer Ericsson said today that it swung into profit in the second quarter (Q2), but the strong krona wiped out sales gains. The company, a pioneer in building the equipment that run mobile phone networks along with Finnish rival Nokia, said it earned a net profit of SEK4.6 billion (US$479 million) in Q2 compared to a US$1.0 billion loss in the same period last year due to writing down the value of a US investment. However, net sales, which were converted into Swedish krona, slid 6% to SEK56.1 billion. The SEK3.7 billion drop in revenue was less than the estimated SEK4.7 billion impact from the higher value of the krona relative to other currencies, in particular the US dollar. While investors are looking at how companies are coping with the US tariffs, the drop in the value of the dollar versus most currencies is also putting pressure on firms. 'It is encouraging that Americas' growth continues, and that Europe has stabilised,' Ericsson chief executive Borje Ekholm said. Sales in the Americas region – Ericsson's largest market – were flat in krona terms but rose 10% when correcting for currency effects and discontinued business. European sales dipped 1% after stripping out currency fluctuations and other changes. Meanwhile the company said its adjusted operating profit hit a three-year high due cost-cutting measures. 'We have structurally lowered our cost base and are strongly focused on delivering further efficiencies,' said Ekholm. Ericsson shares shed more than 3% in morning trading in Stockholm, and are down more than 17% from the start of the year.
Reuters
4 days ago
- Business
- Reuters
Ericsson Q2 profit beats expectations, but US tariffs crimped margin growth
STOCKHOLM, July 15 (Reuters) - Swedish telecom equipment maker Ericsson ( opens new tab reported on Tuesday a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts, but said U.S. tariffs dampened a rise in its profit margin. Ericsson's shares fell 3% in early trading after the result. Operating profit excluding restructuring charges was 7.0 billion crowns ($728.5 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts. "We have structurally lowered our cost base and are strongly focused on delivering further efficiencies," CEO Borje Ekholm said in a statement. U.S. tariffs hampered growth in its profit margins, the company said. President Donald Trump on Saturday threatened to impose a 30% tariff on imports from the European Union starting on August 1. "With production in many parts of the world, including in North America, we will try to balance production, given the development with tariffs," Sandström said. "But of course, we cannot guarantee that we are immune to tariffs." Ericsson missed sales growth estimates, with quarterly group sales, which included a currency headwind of 4.7 billion crowns, falling 6% to 56.1 billion crowns against a mean forecast of 59.3 billion in the poll. Organic sales, however, grew 2%. The company said sales growth was strongest in its largest market, North America, offsetting slowdowns in markets such as India. Business in the U.S. continues to benefit from a solid pace of investments by mobile operators, CFO Lars Sandström told Reuters. He added that he expects the Indian market to pick up soon. Growth in the U.S. has helped Ericsson's profit margin, which stood at 47.5%, a jump from 43.1% in the year-earlier period when sales were higher in low-margin markets such as India.
CNA
4 days ago
- Business
- CNA
Ericsson Q2 profit beats expectations, but US tariffs crimped margin growth
STOCKHOLM :Swedish telecom equipment maker Ericsson reported on Tuesday a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts, but said U.S. tariffs dampened a rise in its profit margin. Ericsson's shares fell 3 per cent in early trading after the result. Operating profit excluding restructuring charges was 7.0 billion crowns ($728.5 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts. "We have structurally lowered our cost base and are strongly focused on delivering further efficiencies," CEO Borje Ekholm said in a statement. U.S. tariffs hampered growth in its profit margins, the company said. President Donald Trump on Saturday threatened to impose a 30 per cent tariff on imports from the European Union starting on August 1. "With production in many parts of the world, including in North America, we will try to balance production, given the development with tariffs," Sandström said. "But of course, we cannot guarantee that we are immune to tariffs." Ericsson missed sales growth estimates, with quarterly group sales, which included a currency headwind of 4.7 billion crowns, falling 6 per cent to 56.1 billion crowns against a mean forecast of 59.3 billion in the poll. Organic sales, however, grew 2 per cent. The company said sales growth was strongest in its largest market, North America, offsetting slowdowns in markets such as India. Business in the U.S. continues to benefit from a solid pace of investments by mobile operators, CFO Lars Sandström told Reuters. He added that he expects the Indian market to pick up soon.
Business Times
4 days ago
- Business
- Business Times
Ericsson's Q2 profit beats expectations, says North America growth was good
[STOCKHOLM] Swedish telecom equipment maker Ericsson reported on Tuesday (Jul 15) a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts. Operating profit excluding restructuring charges was 7.0 billion crowns (S$932.9 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts. 'We have structurally lowered our cost base and are strongly focused on delivering further efficiencies,' CEO Borje Ekholm said in a statement. The company said sales in its Americas segment grew 10 per cent on the back of good growth in its biggest market North America. 'In North America, sales in Networks and Cloud Software and Services increased, benefiting from previous contract wins,' it said. Group sales fell 6 per cent to 56.1 billion crowns, against a mean forecast of 59.3 billion in the poll. Organic sales however grew 2 per cent. Ericsson said tariffs dampened profit margin growth at its Networks segment. It said increased uncertainty remains on the company's outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment. REUTERS
CNA
5 days ago
- Business
- CNA
Ericsson's Q2 profit beats expectations, says North America growth was good
STOCKHOLM :Swedish telecom equipment maker Ericsson reported on Tuesday a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts. Operating profit excluding restructuring charges was 7.0 billion crowns ($728.5 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts. "We have structurally lowered our cost base and are strongly focused on delivering further efficiencies," CEO Borje Ekholm said in a statement. The company said sales in its Americas segment grew 10 per cent on the back of good growth in its biggest market North America. "In North America, sales in Networks and Cloud Software and Services increased, benefiting from previous contract wins," it said. Group sales fell 6 per cent to 56.1 billion crowns, against a mean forecast of 59.3 billion in the poll. Organic sales however grew 2 per cent. Ericsson said tariffs dampened profit margin growth at its Networks segment. It said increased uncertainty remains on the company's outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.
