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Ericsson warned for worse results.

 Swedish tele­coms group Eric­sson has warned that res­ults at its core equip­ment busi­ness are set to get worse as it

Sweden

struggles to win over investors after weak per­form­ance and cor­rup­tion invest­ig­a­tions. Shares in Eric­sson fell 4.7 per cent yes­ter­day after it repor­ted weaker-than­ex­pec­ted fourth-quarter res­ults and said profit mar­gins in its net­works busi­ness would con­tinue to fall in the first half of this year. Eric­sson’s shares have halved since it revealed just under a year ago that it could have made pay­ments to the Isis ter­ror­ist group in Iraq. Cevian Cap­ital, Europe’s largest act­iv­ist investor, has cri­ti­cised Eric­sson’s board, say­ing weak­nesses in its cor­por­ate gov­ernance were cost­ing share­hold­ers bil­lions of dol­lars.


In the fourth quarter, Eric­sson said its rev­en­ues increased 21 per cent to SKr86bn . But its oper­at­ing profit fell by a third to SKr7.9bn, below ana­lyst expect­a­tions. Börje Ekholm, Eric­sson’s chief exec­ut­ive, said he expec­ted profit mar­gins in its net­works busi­ness to con­tinue to fall dur­ing the first half of this year.

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Comments

  1. Nigel22 January 2023 at 13:04

    Making payments to Isis is not ok at all. Isn't there a way to discourage companies from doing this?

    ReplyDelete
    Replies
    1. Maria22 January 2023 at 14:26

      I don't think there is. Besides the reaction of people which lead to their shares going down 50%.

      Delete

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