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☆ Ericsson sees margin at lower end of target; pushes for cost cuts
▼ + stars: | 2022-12-15 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Company to reach lower end of 15-18% EBITA range by 2024Accelerating cost cuts of 9 bln SEK by end of next yearSTOCKHOLM, Dec 15 (Reuters) - Swedish telecom equipment maker Ericsson (ERICb.ST) said on Thursday it would reach the lower end of its long-term target of a profit (EBITA) margin of 15-18% by 2024 as several of its more profitable markets show signs of slowing down. While U.S. and other markets are slowing down, Ericsson is hoping newer markets such as India would help it balance some of the lower demand for 5G equipment. The company is now accelerating plans to cut costs by 9 billion crowns ($880 million) by the end of 2023. While demand for 5G equipment has been strong, the early stages of rollouts tend to have lower margins, meaning telecom groups such as Ericsson and Finnish rival Nokia (NOKIA.HE) rely on patent royalties to boost profits. On Wednesday, Ericsson said U.S. regulators had extended its monitoring of the company for compliance following the 2019 settlement for one more year.

☆ Ericsson to Stay Under U.S. Compliance Monitor an Extra Year
▼ + stars: | 2022-12-14 | by ( Richard Vanderford | ) www.wsj.com time to read: +3 min

Ericsson AB will face an additional year’s scrutiny from a U.S.-mandated monitor appointed in connection with a bribery settlement the company reached in late 2019. The Stockholm-based telecommunications company said Wednesday it had agreed with the U.S. Justice Department and Securities and Exchange Commission to extend the term of its independent compliance monitor until June 2024. The Justice Department notified Ericsson last year that it had breached the agreement by failing to be sufficiently forthcoming with documents and information. Ericsson said it would use the additional time under monitorship to shore up its risk management and compliance frameworks. Newsletter Sign-up WSJ | Risk and Compliance Journal Our Morning Risk Report features insights and news on governance, risk and compliance.

☆ Ericsson earnings miss estimates as costs dent margins
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

STOCKHOLM, Oct 20 (Reuters) - Swedish telecom equipment maker Ericsson (ERICb.ST) on Thursday reported third-quarter core earnings that missed expectations for the second quarter in a row, as margins took a hit from higher component and logistics costs. The company's quarterly adjusted operating earnings fell to 7.1 billion Swedish crowns ($633.05 million) from 8.8 billion crowns a year earlier, missing analysts' mean forecast of 8.73 billion, according to Refinitiv data. Ericsson's quarterly revenue, however, rose to 68 billion crowns from 56.3 billion a year earlier, beating analysts' average estimate of 66.25 billion. Footprint gains with large-scale projects in early stages tend to have a dilutive impact on gross margins, Chief Executive Borje Ekholm said in a statement. ($1 = 11.2155 Swedish crowns)Register now for FREE unlimited access to Reuters.com RegisterReporting by Supantha Mukherjee in Stockholm; editing by Niklas PollardOur Standards: The Thomson Reuters Trust Principles.

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