Q3 report 2010
Ericsson's financial report was released at 7.30am CET, on October 22, 2010. On this page you will find: CEO Comments, Press Conference webcast and the Media & Analyst conference call information.
"Group sales in the quarter increased 2% year-over-year and was almost flat sequentially, negatively affected by a strong SEK," says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). "Sales in the quarter for comparable units, adjusted for currency exchange rate effects and hedging, decreased -5% year-over-year.
Networks sales grew 6% year-over-year with a continued transition from voice to data related business. Global Services sales grew 3% year-over year and accounted for some 40% of total sales. In local currencies Professional Services sales grew 10%. Multimedia sales declined -31% year-over-year.
A key priority has been to mitigate the effects of industry-wide component shortage and supply chain bottlenecks. The situation has gradually improved during the quarter but it remains a challenge to fully meet the demand for mobile broadband. While the supply chain bottlenecks have been resolved the industry-wide component shortage remains.
Net income increased year-over-year and sequentially mainly due to improvements in operational results and Sony Ericsson earnings as well as less restructuring charges. At the same time cash flow was strong in the quarter at SEK 12.7 b.
During the quarter, mobile broadband continued to grow, especially in North America and Japan. In China demand for 2G capacity expansions returned during the quarter. India gradually improved with 2G deliveries and in the 3G vendor selection, we have maintained our market share. Western Europe is still slow although we have been awarded our first modernization contracts. In other markets, development is slow with continued cautious operator investments. Across the world, operator focus is still on reducing operating expenditure and outsourcing of operations.
We see continued growth opportunities in the market and the combined strength of our technology leadership, our scale advantage, along with global presence and skilled employees are our key assets," concludes Hans Vestberg.
Media & analyst conference call, Live audio webcast, 2PM CET
Sweden: +46 (0) 850 520 270
UK & Europe: +44 (0) 208 817 9301
US & international: +1 718 354 1226
Confirmation code: 3652140#
(Participants will have to quote the confirmation code when dialing into the conference)
A replay of the conference call will be available 60 minutes after the scheduled end time. The playback will be available until October 29, 2010.
Sweden replay number: +46 (0) 8 5052 0294
UK & European replay number: +44 (0) 20 7769 6425
US replay number: +1 718 354 1226
Replay pass code: 3652 140#
Press conference webcast replay from 9am CET
The press conference began at 9am CET on October 22 at Ericsson Studio on Grönlandsgången, Kista, Sweden. President and CEO Hans Vestberg commented on the result and answered questions. The press conference was open to journalists and analysts.
Note: Webcast viewers were not able to post questions.