January 27, 2021

Ericsson traces millions of losses and earns 21 million euros until September

Ericsson traces millions of losses and earns 21 million euros until September



The Swedish telecommunications company Ericsson obtained a net profit of 221 million Swedish crowns (21 million euros) until September, compared to the loss of 13,940 million crowns (1,352 million euros) a year ago.

The operating result went from a loss of 15,465 million Swedish crowns (1,499 million euros) to a gain of 3,094 million crowns (300 million euros), according to the balance released today by Ericsson, who a year ago attributed the bad result to the harsh market conditions.

Net sales amounted to 147,000 million Swedish crowns (14,253 million euros), a figure almost identical to the same period of 2017.

Ericsson earned SEK 2,748 million (€ 266 million) net between July and September, compared to a loss of SEK 3,457 million (€ 335 million) a year ago.

The rise in gross margin, the increase in sales and a reduction in losses due to depreciation of commercial credit value explain the improvement in the result in the third quarter, the company explained.

The operating profit was SEK 3,241 million (€ 314 million) in the face of the loss of € 3,652 million (€ 354 million) in the same period of 2017.

Net sales rose 9% to 53,810 million Swedish crowns (5,217 million euros), driven by good numbers in the North American market.

The company's executive director, Börje Ekholm, stressed that although the cost reduction program announced in July last year has been completed, "we will continue our efforts in pursuit of efficiency and lower expenses to improve competitiveness".

Ericsson, which has been experiencing economic problems for two years, had a staff of 94,499 employees as of September 30, compared to 100,735 a year earlier.

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