|SEK b.|| Q1|
|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%|
|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%|
|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.
"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.
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).
Video material will be published during the day on www.ericsson.com/broadcast_room
Åse Lindskog, Vice President,
Head of Investor and Analyst Relations
Phone: +46 10 719 9725
+46 730 244 872
Stefan Jelvin, Director,
Phone: +46 10 714 2039
Åsa Konnbjer, Director,
Phone: +46 10 713 3928
Rikard Tunedal, Director,
Phone: +46 10 714 5400
Ola Rembe, Vice President,
Head of Corporate Public & Media Relations
Phone: +46 10 719 9727
+46 730 244 873
Corporate Public & Media Relations
Phone: +46 10 719 69 92
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
SE-164 83 Stockholm
Phone: +46 10 719 0000
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.
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