Q1 report 2009
Ericsson's financial report was released at 7.30am CET, on April 30, 2009. On this page you will find: CEO Comments, Press Conference webcast and the Media & Analyst conference call information.
"We have started the year with good growth ahead of the market and a positive margin trend but with a weaker cash flow," said Carl-Henric Svanberg, President and CEO of Ericsson (NASDAQ:ERIC). "Sales of network infrastructure are stable and the demand for professional services is growing. We have won several strategic contracts during the quarter, including 3G for China Unicom, 4G for Verizon Wireless and managed services for Vodafone UK.
The effects of the global economic recession on the global mobile network market are so far limited. We have seen operators, in a few markets where local currencies have depreciated dramatically, postpone investments. Some operators are also more cautious with longer-term investments in fixed networks, such as rollout of fiber networks. Most operators, however, have healthy financial positions, there is a strong traffic growth and the networks are fairly loaded.
It remains difficult to more precisely predict how operators will act in the current environment. However, investments in wireless networks largely continues, and rollouts of new networks and new technologies accelerate in markets such as the US, China and India. Telecom plays a critical role for growth and development of societies, and fixed and mobile broadband rollouts are now on political agendas in most countries.
Our cost reduction activities are running according to plan, targeting annual savings of SEK 10 b. from the second half of 2010. With our business mix, worldwide presence and early decision to cut costs, we are well positioned to strengthen our leadership in the present turbulent economic environment.
Our joint ventures, Sony Ericsson and ST-Ericsson, are affected by the economic downturn and the dramatic decline in consumer demand for handsets. Extensive programs to reduce costs are ongoing to adjust to the current market environment and restore profitability," concluded Carl-Henric Svanberg.
Media & Analyst conference call live audio webcast, 2PM CET
Call-in numbers for conference call:
Sweden: +46 (0)8 5051 3641
UK & Europe: +44 (0)20 7138 0826
US & international: +1 212 444 0481
Confirmation code: 4316322
(Participants will have to quote the confirmation code when dialing into the conference)
Sweden replay number: +46 (0)8 5876 9441
UK & European replay number: +44 (0)20 7806 1970
US & International: +1 718 354 1112
Replay pass code: 4316322#
The press conference began at 9am CET at Ericsson headquarters, Torshamnsgatan 21, Kista, Sweden. Ericsson President and CEO Carl-Henric Svanberg and CFO Hans Vestberg commented on the results and took questions. The press conference was open to journalists and analysts.
Note: Webcast viewers was not be able to post questions.