Ericsson: High costs affecting net income in the quarter

20 July 2015

business people re-el magazine

Ericsson has announced that the sales of mobile broadband in North America stabilized in the quarter but remained lower yoy, as announced there was 19% drop in net profit for the second quarter.
Net profit of the Swedish company amounted to 2.09 billion kroner (244.9 million dollars) against 2.58 billion kroner in the same period at last year, as the higher cost of the ongoing restructuring plan, has offset an increase in sales. Earnings were below the expectations of analysts for 2.57 billion kronor, according to a poll by FactSet.
Net sales rose 60.67 billion kronor, higher than the 54.85 billion kronor a year earlier, higher than analyst estimates of 57.94 billion kronor. Sales adjusted for comparable units and currencies, fell 6% yoy while gross margin of the company contracted to 33.2% from 36.4% last year.