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FROM THE BBC
Ericsson profits beat forecasts
Swedish telecoms firm Ericsson has confirmed its recovery with profits that beat forecasts by more than 100%.
The firm, which sank deep into the red during the technology slump of 2000-2, made 5.5bn crowns ($750m; £410m) before tax in the three months to December.
Heavy cost-cutting has helped to turn the company around.
Ericsson was cautiously positive about prospects for 2004, following the lead of its peers, but warned of tough times in the first three months of the year.
The improvement in the firm's bottom line meant early trading drove its shares up 5% even before the market opened in Stockholm.
Cutbacks
Ericsson's changed fortunes from both the reviving tech market and its cost-cutting strategy present a contrast with 2002.
In the same period of that year, the cost of cutting jobs and shifting its spending patterns - and the decision to merge its handset business with that of electronics giant Sony - meant it lost 2.1bn crowns before tax.
The company's results had sunk into the red in 2000, and stayed there until the third quarter of 2003.
Now that the cost programme - which saw thousands of employees lose their jobs - has settled down, the effects are showing in the company's margins.
Ericsson had predicted a gross margin, the proportion of revenue left after accounting for general costs, parts and labour, of about 36.5%.
In fact, the figure came in at 41.6%.
But the first three months of 2004 are likely to prove tougher.
The mobile market always experiences a slump after the holiday rush, and the decline from the December quarter's sales of 36.2bn crowns could be as much as 30%.
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Posted: 2004-02-06 10:57:46
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Thats d way i like it! Hail Sweden! Reg
This message was posted from a R520
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Posted: 2004-02-06 19:05:45
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A short part of the Sony Ericsson video clip was also showed by the BBCworld news today.
http://www.esato.com/board/viewtopic.php?topic=48541
http://www.esato.com/board/viewtopic.php?topic=49132
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Posted: 2004-02-07 01:14:09
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