Ericsson’s quarterly earnings jump 26% despite flat sales
20 July 2013 4:17 AM IST
Wireless equipment maker Ericsson AB's second-quarter earnings grew 26 per cent compared to a year ago thanks to higher gross margins and lower operating costs, while sales were flat for the period due to currency fluctuations, the company said on Thursday.
Earnings over the three-month period reached $227 millio, compared with 1.2 billion kronor in the second quarter last year, partly due to the effects of a string of recent decisions to exit loss-making businesses.
Sales, however, were flat at $8.4 billion due to currency fluctuations, CEO Hans Vestberg said in a statement, though unit sales were up 7 per cent year-on-year, pointing to a slight recovery.
The Stockholm-based manufacturer of telecommunications infrastructure, the world's largest, is struggling in an increasingly competitive environment and has cuts thousands of jobs in Sweden over the past year to slash costs.
Globally, Ericsson's second quarter sales in North America were up 18 per cent year-on-year, accounting for nearly 28 percent of all company sales, while sales in northeast Asia, which includes China and South Korea, slumped 21 per cent.
The company said it strengthened exposure to television and media markets over the quarter as use of video in mobile networks is expected to grow 60 per cent annually until 2018.
Earnings over the three-month period reached $227 millio, compared with 1.2 billion kronor in the second quarter last year, partly due to the effects of a string of recent decisions to exit loss-making businesses.
Sales, however, were flat at $8.4 billion due to currency fluctuations, CEO Hans Vestberg said in a statement, though unit sales were up 7 per cent year-on-year, pointing to a slight recovery.
The Stockholm-based manufacturer of telecommunications infrastructure, the world's largest, is struggling in an increasingly competitive environment and has cuts thousands of jobs in Sweden over the past year to slash costs.
Globally, Ericsson's second quarter sales in North America were up 18 per cent year-on-year, accounting for nearly 28 percent of all company sales, while sales in northeast Asia, which includes China and South Korea, slumped 21 per cent.
The company said it strengthened exposure to television and media markets over the quarter as use of video in mobile networks is expected to grow 60 per cent annually until 2018.
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