Q3 report 2009
Ericsson's financial report was released at 7.30am CET, on October 22, 2009. On this page you will find: CEO Comments, Press Conference webcast and the Media & Analyst conference call information.
"Sales of network equipment declined due to lower demand in the current tougher market environment. Despite lower volumes, Network margins remain stable. The strong development in Professional Services continued," says Carl-Henric Svanberg, President and CEO of Ericsson (NASDAQ:ERIC). "Our cost reduction activities are running ahead of plan with further opportunities for efficiency improvements and savings.
As commented on in previous reports, the economic climate affects the global mobile infrastructure market and the credit environment is still tight in several emerging markets. However, other markets, including the world's leading economies such as China, India, US and Japan show good development.
The technology shift from voice telephony to mobile broadband is ongoing. Mobile broadband users and traffic are increasing rapidly and will eventually connect billions of people to internet. With the shift follows the anticipated decline in GSM sales, accelerated by the current recession, which is not yet offset by the growth in mobile broadband.
Our services operation continues to show strong development. While managed services are often in focus, systems integration and consulting are increasingly important. Services margins are stable despite being negatively affected by the start up costs in the third quarter for the Sprint and Zain services contracts as well as the reduced scope and transformation costs for the renewed managed services agreement in Italy.
In late September, we were pleased to welcome the former Sprint employees into Ericsson, and we look forward to soon also welcome former Nortel employees. This, together with the major contract wins with Verizon, AT&T and Metro PCS in mobile and fixed broadband, makes Ericsson the leading provider of telecommunications technology and services in North America.
While the current economic environment affects all parts of society the longer-term fundamentals for our industry remain solid. Mobile telephony is reaching a penetration beyond all expectations. We expect mobile broadband to show a similar exciting development over the years to come, not least as the vast majority of the world's population will be able to reach internet only through mobile technology. We are well positioned to lead our industry forward," concludes Carl-Henric Svanberg.
Media & Analyst conference call, live audio webcast, 2PM CET
Call-in numbers for conference call:
Sweden: +46 (0) 8 5352 6440
UK & Europe: +44 (0) 20 7138 0826
US & international: +1 212 444 0481
Confirmation code: 4806136
(Participants will have to quote the confirmation code when dialing into the conference)
Sweden replay number: +46 (0) 8 5051 3897
UK & European replay number: +44 (0) 20 7111 1244
US & International: +1 347 366 9565
Replay pass code: 4806136#
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.