| 2009-04-30 - Sales SEK 49.6 (44.2) b, up 5% for comparable units in constant currencies
- Operating income before joint ventures SEK 4.7 (3.4) b
- Operating margin before joint ventures 9.5% (7.6%)
- Share in earnings from joint ventures SEK -2.2 (0.9) b
- Income after financial items SEK 3.3 (4.5) b
- Restructuring charges SEK 0.7 (0.8) b, excluding joint ventures
- Net income SEK 1.8 (2.6) b
- Earnings per share SEK 0.54 (0.83)
- Cash flow SEK -1.7 (2.8) b, including SEK 1.5 b pension trusts payment
CEO comments
“We have started the year with good growth ahead of the market and a positive margin trend but with a weaker cash flow,” said Carl-Henric Svanberg, President and CEO of Ericsson. “Sales of network infrastructure are stable and the demand for professional services is growing. We have won several strategic contracts during the quarter, including 3G for China Unicom, 4G for Verizon Wireless and managed services for Vodafone UK.
The effects of the global economic recession on the global mobile network market are so far limited. We have seen operators, in a few markets where local currencies have depreciated dramatically, postpone investments. Some operators are also more cautious with longer-term investments in fixed networks, such as rollout of fiber networks. Most operators, however, have healthy financial positions, there is a strong traffic growth and the networks are fairly loaded.
It remains difficult to more precisely predict how operators will act in the current environment. However, investments in wireless networks largely continues, and rollouts of new networks and new technologies accelerate in markets such as the US, China and India. Telecom plays a critical role for growth and development of societies, and fixed and mobile broadband rollouts are now on political agendas in most countries.
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