Ericsson doubles profit for quarter; cites cellular gear
Article Abstract:
Telefon AB L.M. Ericsson 2nd qtr pretax profit more than doubled, from 422 million Swedish kroner in 1992 to 858 million kroner in 1993. Sales for the quarter leaped 34 percent to 14.53 billion kroner. First-half profit skyrocketed from 59 million kroner in 1992 to 1.29 billion kroner in 1993, putting the firm on track to meet its latest profit projection for the year of 2.6 billion kroner. Ericsson benefited from soaring sales of network equipment and cellular telephones, an 18-month-old cost-reduction effort and rising financial income. Because the telecommunications firm hedges its foreign-exchange exposure, its profits have not yet benefited from a 25 percent drop in the krona. Those hedging contracts will begin expiring in 3rd qtr 1993. Some analysts fear that AT and T's acquisition of McCaw Cellular Communications Inc, Ericsson's biggest customer, could slow Ericsson's growth.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Ericsson says pretax profit rose 16% in 4th period, but firm is cautious on '91
Article Abstract:
L.M. Ericsson Telefon AB attributes continued expansion of its public telecommunications and radio communications divisions to its 4th qtr FY 1990 pretax profit increase of 16 percent to 1.61 billion Swedish kronor ($294 million). Ericsson CEO Lars Ramqvist says it will be difficult to improve the company's profit and was conservative about 1991 prospects. Market reaction to Ericsson's careful assessment resulted in a decrease in the price of the company's shares on the Stockholm Stock Exchange. Ericsson's B-free stock dropped 22 kronor to close at 177 kronor. Investors expected Ericsson's profit to continue growing strongly, but are alarmed by the company's 1991 forecast. Ericsson reported a 30 percent pretax profit increase during 1990 to 4.85 kronor from 3.72 kronor in 1989. Sales for 1990 increased 16 percent to 45.7 billion kronor from 39.55 billion.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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GE and Telefon Ericsson form venture in mobile cellular telephone systems
Article Abstract:
General Electric (GE) contracts with L.M. Ericsson Telefon AB to promote mobile telecommunications in the US. GE has tried for five years to lead the market and hopes that an agreement with the Swedish cellular system supplier will increase market share and reduce financial risk. GE currently holds a 15 to 20 percent share of the market in each of the mobile telephone and radio markets. Ericsson would like to eventually branch out into the conventional telephone switching business, an opportunity that the reduced financial risk inherent in a joint venture affords it. The joint venture will be called Ericsson-GE Mobile Communications, owned 60 percent by Ericsson and 40 percent by GE. Ericsson-GE will employ 2,300 GE employees and 2,200 Ericsson employees. Sales will reach $1 billion by 1990, according to company predictions.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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