Ericsson first quarter report 2012

2012-04-25 Categorías: Corporate, Press Releases Download:
  • Sales decreased -4% YoY, impacted by an expected major decline in CDMA sales as well as lower operator network spending in regions with macro-economic or political uncertainty. Global Services and consolidation of Telcordia contributed positively.
  • The underlying business mix, with higher share of coverage and network modernization projects than capacity projects, was unchanged. This mix is expected to prevail short-term.
  • Operating margin 5.5% excl. gain from Sony Ericsson divestment and loss in ST-Ericsson.
  • Net income SEK 8.8 b. up 116% YoY, impacted by gain from Sony Ericsson divestment of SEK 7.7 b and loss in ST-Ericsson.
  • EPS diluted SEK 2.76 (1.27), driven by gain from Sony Ericsson divestment. EPS Non-IFRS and excluding Sony Ericsson gain SEK 0.77 (1.61).

SEK b. Q1
2012 
Q1
2011
YoY
Change
Q4
2011
QoQ
Change
Net sales 51.0 53.0 -4% 63.7 -20%
Of which Networks 27.3 33.2 -18% 33.3 -18%
Of which Global Services 20.6 17.4 18% 27.0 -24%
Of which Support Solutions 3.0 2.3 33% 3.4 -11%
Gross margin 33.3% 38.5% - 30.2% -
EBITA margin excl JVs and Sony Ericsson sale 7.7% 14.1% - 8.1% -
Operating income excl JVs and Sony Ericsson sale 2.8 6.3 -56% 4.1 -32%
Operating margin excl JVs and Sony Ericsson sale 5.5% 11.9% - 6.4% -
EBITA margin excl JVs 22.8% 14.1% - 8.1% -
Operating income excl JVs   10.5 6.3 67% 4.1 159%
Operating margin excl JVs 20.6% 11.9% - 6.4% -
Of which Networks 6% 17% - 8% -
Of which Global Services 6% 7% - 6% -
Of which Support Solutions -1% -15% - 0% -
Operating income incl JVs 9.1 5.8 56% 2.2 321%
Income after financial items 9.1 5.8 56% 1.8 396%
Net income 8.8 4.1 116% 1.5 490%
EPS diluted, SEK 2.76 1.27 117% 0.36 667%
EPS (Non-IFRS), SEK1)   3.14 1.61 95% 0.81 288%
Cash flow from operations 0.7 -2.9 - 5.5 -
Cash conversion, year to date 17% -46% - 79% -
Net cash, end of period 37.1 48.2 -23% 39.5 -6%
1)  EPS, diluted, excl. amortizations, write-downs of acquired intangible assets and restructuring.
Q112 includes a gain from the divestment of Sony Ericsson of SEK 7.7 b.

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

"Sales of high-performance mobile broadband developed well in North America, Japan and Korea, while other regions such as Europe including Russia, parts of Middle East and India were weaker," says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). "CDMA continued its expected decline in the transition to LTE. Our services business showed continued momentum where especially Professional Services developed favorably. Support Solutions (former Multimedia) increased organic sales.

In the quarter, we took important steps in our strategy execution. The announced acquisition of BelAir adds WiFi capabilities to our hetnet portfolio and by acquiring Technicolor's Broadcast Services Division we have strengthened our position in media and broadcasting services, targeting a leadership position in Europe. With the completed divestment of Sony Ericsson, we have left the consumer part of the handset business in order to focus on enabling connectivity for all devices, handsets and beyond. Last year, we gained market share in our core businesses and continued to build a strong LTE position where we have more than 60% market share.

Late 2010, we took a strategic decision to increase our market share in Europe when operators started to modernize their networks and replacing old infrastructure with new multi-standard radio base stations. This, together with the business mix with more coverage than capacity projects, has, as expected, had a negative impact on gross margin YoY and is expected to prevail short-term.

Our joint venture ST-Ericsson has launched a revised strategy and actions to reduce its break-even point. We remain confident that ST-Ericsson has a strategic position in the industry to enable the device ecosystem," 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/2012/3month12-en.pdf

EDITOR'S NOTE

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 25, 2012. 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

FOR FURTHER INFORMATION, PLEASE CONTACT

Helena Norrman, Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: investor.relations@ericsson.com or media.relations@ericsson.com

INVESTORS

Åse Lindskog, Vice President,
Head of Investor and Analyst Relations
Phone: +46 10 719 9725
+46 730 244 872
E-mail: investor.relations@ericsson.com

Stefan Jelvin, Director,
Investor Relations
Phone: +46 10 714 2039
E-mail: investor.relations@ericsson.com

Åsa Konnbjer, Director,
Investor Relations
Phone: +46 10 713 3928
E-mail: investor.relations@ericsson.com  

Rikard Tunedal, Director,
Investor Relations
Phone: +46 10 714 5400
E-mail: investor.relations@ericsson.com

MEDIA

Ola Rembe, Vice President,
Head of Corporate Public & Media Relations
Phone: +46 10 719 9727
+46 730 244 873
E-mail: media.relations@ericsson.com

Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000
www.ericsson.com  

Ericsson discloses the information provided herein pursuant to the Securities Markets Act. The information was submitted for publication at 07.30 CET, on April 25, 2012.