Ericsson Plans To Establish Leadership In Targeted Areas - Quick Facts

(RTTNews) - Ericsson (ERIC) said the company plans to establish leadership in targeted areas, which include cloud, IP networks, TV and media, OSS and BSS, as well as in the realm of Industry & Society, addressing new customer segments outside of the telecommunications operator domain. The company also plans to excel in its core business - radio, core and transmission, and telecommunications services.

The company said its ambition is to continue to grow faster than the projected total addressable market CAGR of 2 to 4 percent in 2014-2018, including growing faster than the market in targeted areas. For 2015, rolling four quarters, the total sales in targeted areas amounted to 45 billion Swedish kronor, up from 35 billion kronor for the same period last year and representing a growing share of Ericsson's total sales.

The company expects the newly announced Cisco partnership to generate $1 billion or more of additional sales by 2018. The additional sales are expected to be accretive to operating income already 2016.

Ericsson said its cost and efficiency program announced in November 2014 with target of achieving annual net savings of 9 billion Swedish kronor during 2017 is tracking according to plan. The program is expected to generate approximately 3.5 to 4.5 billion kronor in restructuring charges 2015-2017, a revision from the previously communicated expectation of 3 to 4 billion kronor.