The Swedish communications technology provider, Ericsson today reported a negative net income of SEK 2.7 billion ( 0.29 billion) for the Q2, a figure that kept unchanged from the same period a year ago. Despite the 7 per cent increase over Q1, the net sales swooped 28 per cent over Q2 2002 to SEK 27.6 billion ( 2.9 billion). Ericsson now employs 57,644 corporate staff, a slump of 24 per cent over 2002 second quarter. CEO Carl-Henric Svanberg believes that these are still the effects of a major restructuring being carried out on the corporation.
“We remain determined to return to profit during 2003. Over eight quarters we have more than halved our operating expenses and are approaching our earlier announced cost targets. I am impressed with how our employees are carrying out this dramatic downsizing in the middle of the ongoing launches of new technology. We are encouraged by a third quarter of positive cash flow and a strengthened financial position,” comments Carl-Henric Svanberg, President and CEO of Ericsson.
But we are not satisfied. We see clear potential for further gross margin improvements and by establishing operational excellence we will secure the profitability and cost advantages attainable by the market leader. In the longer-term perspective I remain confident in the market opportunities, he added.
Em Foco – Empresa