Welcome!

Microsoft Cloud Authors: Pat Romanski, Lori MacVittie, Andreas Grabner, Jim Kaskade, John Basso

News Feed Item

Ericsson fourth quarter and full year 2012 report

STOCKHOLM, SWEDEN -- (Marketwire) -- 01/31/13 --


Fourth quarter highlights

* Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6% YoY driven mainly by North America. QoQ Networks sales grew 31%, primarily due to normal higher year-end business activity

* Operating margin excl. JVs improved to 7.1% (6.4%) YoY mainly driven by increased Networks sales, offset by continued efficiency measures generating restructuring charges with a negative impact on operating margin of close to -3%-points (-1%)

* Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 b. as previously communicated and a reduction of deferred tax assets of SEK -0.5 b. related to lowered corporate tax rate in Sweden

* EPS diluted SEK -1.99 (0.36). EPS Non-IFRS and excluding ST-Ericsson charge SEK 1.07 (0.81)

* Cash flow from operations increased to SEK 15.7 b. driven by reduced working capital.

Full year highlights

* Sales were flat YoY with growth in Global Services and Support Solutions, while Networks sales declined partly due to the 40% decline of CDMA equipment sales

* Operating margin, excluding JVs, was flat at 9.7% (9.6%). Excluding the gain related to the divestment of Sony Ericsson operating margin was 6.4%

* Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericsson gain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.

* EPS diluted SEK 1.78 (3.77). EPS Non-IFRS SEK 3.55 (5.54)

* Cash flow from operations SEK 22.0 b. Full year cash conversion of 116%, above the target >70%

* Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) per share.

---------------------------------------------------------------------------
                                                     Full       Full   Full
                       Q4    Q4    YoY    Q3    QoQ  year       year   year
 SEK b.             2012   2011 Change  2012 Change  2012       2011 Change
---------------------------------------------------------------------------
 Net sales           66.9  63.7     5%  54.6    23% 227.8      226.9     0%
---------------------------------------------------------------------------
 Of which Networks   35.3  33.3     6%  26.9    31% 117.3      132.4   -11%
---------------------------------------------------------------------------
 Of which Global                                                        16%
 Services            28.0  27.0     4%  24.3    15%  97.0       83.9
---------------------------------------------------------------------------
 Of which Support                                                       26%
 Solutions            3.6   3.4     6%   3.3     9%  13.5       10.6
---------------------------------------------------------------------------
 Gross margin       31.1% 30.2%      - 30.4%      - 31.6%      35.1%      -
---------------------------------------------------------------------------
 EBITA margin excl
 JVs and Sony
 Ericsson sale       8.8%  8.1%      -  8.7%      -  8.4%      11.6%      -
---------------------------------------------------------------------------
 Operating income
 Excl JVs and Sony
 Ericsson sale       4.8   4.1    17%   3.7    30%  14.5       21.7   -33%
---------------------------------------------------------------------------
 Operating margin
 Excl JVs and Sony
 Ericsson sale       7.1%  6.4%      -  6.7%      -  6.4%       9.6%      -
---------------------------------------------------------------------------
 EBITA margin excl
 JVs                 8.8%  8.1%      -  8.7%      - 11.7%      11.6%      -
---------------------------------------------------------------------------
 Operating income
 excl                                                                    2%
 JVs                  4.8   4.1    17%   3.7    30%  22.2       21.7
---------------------------------------------------------------------------
 Operating margin
 excl                                                                     -
 JVs                 7.1%  6.4%      -  6.7%      -  9.7%       9.6%
---------------------------------------------------------------------------
 Of which Networks     8%    8%      -    5%      -    6%        13%      -
---------------------------------------------------------------------------
 Of which Global                                                          -
 Services              6%    6%      -    8%      -    6%         7%
---------------------------------------------------------------------------
 Of which Support                                                         -
 Solutions             8%    0%      -   14%      -    9%        -5%
---------------------------------------------------------------------------
 Operating income
 incl JVs            -3.8   2.2      -   3.1      -  10.5       17.9
---------------------------------------------------------------------------
 Of which
 ST-Ericsson         -8.5  -0.8      -  -0.6      - -11.7       -2.7      -
---------------------------------------------------------------------------
 Income after
 Financial items     -3.9   1.8      -   3.2      -  10.2       18.1
---------------------------------------------------------------------------
 Net income          -6.3   1.5      -   2.2      -   5.9       12.6
---------------------------------------------------------------------------
 EPS diluted, SEK   -1.99  0.36      -  0.67      -  1.78       3.77   -53%
---------------------------------------------------------------------------
 EPS (Non-IFRS),                                                       -36%
 SEK(1))            -1.40  0.81      -  1.04      -  3.55       5.54
---------------------------------------------------------------------------
 Cash flow from                                                        121%
 operations          15.7   5.5   187%   7.0   125%  22.0       10.0
---------------------------------------------------------------------------
 Cash conversion     227%   79%      -  149%      -  116%        40%      -
---------------------------------------------------------------------------
 Net cash, end of                                                       -2%
 period              38.5  39.5    -2%  29.0    33%  38.5       39.5
---------------------------------------------------------------------------
 (1))  EPS, diluted, excl. amortizations, write-downs of acquired
 intangible assets, restructuring
 Twelve months 2012 includes a gain from the divestment of Sony Ericsson
 of SEK 7.7 b.
---------------------------------------------------------------------------

Comments from Hans Vestberg, President and CEO

"Our segments showed mixed developments during the year with strong growth in Global Services and Support Solutions, while Networks had a more challenging year. Support Solutions went from losses in 2011 into profitability and together with Global Services represented close to 50% of Group sales in 2012, compared to 42% in 2011," says Hans Vestberg, President and CEO of Ericsson (NASDAQ: ERIC).

"During the year profitability was negatively impacted by operating losses in ST-Ericsson, the ongoing network modernization projects in Europe as well as the underlying business mix, with a higher share of coverage projects than capacity projects. With present visibility of customer demand, and with the current global economic development, underlying business mix is expected to gradually shift towards more capacity projects during the second half of 2013.

We ended the year with strong cash flow and a full-year cash conversion well above target. The Board of Directors proposes a dividend for 2012 of SEK 2.75 (2.50) per share, an increase by 10%.

Throughout 2012 North America was our strongest market, driven by continued mobile broadband investments and demand for services. However, regions such as South East Asia and Oceania and Sub-Saharan Africa gradually improved during the year.

In the fourth quarter Networks sales recovered, despite continued expected decline in CDMA. Profitability in Networks improved sequentially due to higher sales and a higher share of software sales. Sales and profitability for Global Services and Support Solutions remained stable.

The quarter was negatively impacted by a non-cash charge related to ST-Ericsson. Following the announcement of STMicroelectronics' intention to exit as a shareholder, Ericsson will explore various strategic options for ST-Ericsson assets. We believe that the modem technology, which we originally contributed to the JV, has a strategic value to the wireless industry.

The work to leverage our strength in the growth areas mobile broadband, managed services and operations and business support systems (OSS/BSS) has continued during the year, with both selective acquisitions and divestments. In addition, we completed the divestment of Sony Ericsson and introduced a new strategy for Support Solutions. Improving profitability, reducing costs and working capital remain high on the agenda also for 2013. While the macroeconomic and political uncertainty continues in certain regions the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market," concludes Vestberg.

You find the complete report with tables in the attached PDF or by following this link: www.ericsson.com/res/investors/docs/q-reports/2012/12month12-en.pdf

Editor's note

To read the complete report with tables, please go to:

www.ericsson.com/thecompany/investors/financial-reports/interim-reports/Q4-report-2012

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), January 31, 2013. An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors

Video material will be published during the day on www.ericsson.com/broadcast_room

Ericsson discloses the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET, on January 31, 2013.

Ericsson fourth quarter and full year 2012:

http://hugin.info/1061/R/1674425/545208.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1674425]

For further information, please contact

Helena Norrman
Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: Email Contact
or Email Contact

Investors

Asa Konnbjer
Director, Investor Relations
Phone: +46 10 713 3928
+46 730 825 928
E-mail: Email Contact

Stefan Jelvin
Director, Investor Relations
Phone: +46 10 714 2039
+46 709 860 227
E-mail: Email Contact

Rikard Tunedal
Director, Investor Relations
Phone: +46 10 714 5400
+46 761 005 400
E-mail: Email Contact

Media

Ola Rembe
Vice President
Head of Corporate Communications & PR
Phone: +46 10 719 9727
+46 730 244 873
E-mail: Email Contact

Corporate Communications & PR
Phone: +46 10 719 69 92
E-mail: Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2017 New York. The 20th Cloud Expo and 7th @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Internet to enable us all to im...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...