Ericsson Q4 operating profits fall short of expectations

(Sharecast News) - Telecommunications equipment maker Ericsson said on Friday that Q4 operating profits had fallen short of expectations on the back of a slowdown in India. Ericsson said operating profits, excluding restructuring costs and impairments, came to SEK 9.8bn (£722.54m) in Q4, up from SEK 7.4bn (£545.59m) a year earlier but short of the SEK 10.3bn (£759.4m) expected by analysts. Net sales rose 1% to SEK 72.9bn (£5.37bn) beating estimates of SEK 72.5bn (£5.34bn).

Sales in Asia fell double digits, mainly because of a slowdown in India, which had previously offset weaker growth in North America. Revenue in its enterprise segment declined 7% in Q4 and delivered a bigger-than-expected loss.

The Stockholm-based firm also noted that strength in its core networks business had been offset by weakness in its other units and also warned that it may take a hit from proposed tariffs on imports from the EU into the US.

As of 1125 GMT, Ericsson shares were down 8.99% at SEK 88.80 each.









Reporting by Iain Gilbert at Sharecast.com