Ericsson Q4 Profit Down, Net Sales Rise; Says On Track To Meet Long-term EBITA Target

(RTTNews) - Swedish telecom major LM Ericsson (ERIC) reported Friday that its fourth-quarter net income declined 39 percent to 6.2 billion Swedish kronor from last year's 10.1 billion kronor.

Earnings per share were 1.82 kronor, down 40 percent from 3.02 kronor a year ago.

EBITA excluding restructuring charges fell 27 percent from last year to 9.3 billion kronor, and adjusted EBITA margin dropped to 10.8 percent from 17.9 percent a year ago.

The results reflected previously announced charges of 4.0 billion kronor, including DOJ provision, IoT divestment and Cloud Software and Services contract and portfolio exits.

Net sales for the quarter, however, grew 21 percent to 86.0 billion kronor from prior year's 71.3 kronor. In this, Vonage contributed 4.1 billion kronor.

Group organic sales grew 1 percent from last year, of which IPR revenues contributed with 5 percentage points.

Looking ahead, the company said it is on track to deliver on its long-term EBITA target of 15-18 percent by 2024, and that it has full confidence in the long term.

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