View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
February 12, 1997updated 04 Sep 2016 12:48am


By CBR Staff Writer

Despite reporting figures that show it to have stormed past most of the competition to become one of the dominant players in the industry, with over $16bn in annual sales, and a healthy level of profits, L M Ericsson Telefon AB saw its shares slump four krone at 248 krone after it announced the figures. People were long in the share before the report so there is no real upside, a Stockholm trader commented to Reuter. But there was nothing negative in the report and the share price could swing several times later today. The stronger krone cost the company $121.7m compared with last year. Mainly the stronger earnings capacity, the faster inventory revenue and large customer payments at year end contributed to the company’s strong cash flow. Cash flow was a positive $546m compared with a negative $348m last year, and the company says this should be sufficient for its investment program needs. As a result of the action programs and rationalization measures that we have implemented, Ericsson can now show a strongly improved positive cash flow despite the sharp growth in operations, managing director Lars Ramqvist said. Gross margins have weakened as a result of increased competition, currency effects and increased risks which have been taken into account in the report concerning changes in technology and markets, Ericsson said. It sees signs of similar price pressures on all products this year as last.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.