Ericsson Slips To Loss In Q1 On Weak Sales - Quick Facts

(RTTNews) - Ericsson (ERIC) reported Tuesday first-quarter net loss of 10.9 billion Swedish kronor or 3.29 kronor per share, compared to profit of 2.1 billion kronor or 0.60 per share a year ago.

Adjusted loss per share was 2.42 kronor, compared to prior year's profit of 0.87 kronor.

Net sales declined 11 percent to 46.4 billion kronor from 52.2 billion kronor a year ago. Sales, adjusted for currency, decreased 16% partly due to lower IPR licensing revenues.

Looking ahead, the company said that the more focused business strategy is expected to result in a significantly improved profitability already in 2018. Beyond 2018, the company believes that it can at least double the underlying 2016 operating margin.

The restructuring charges for 2017 are estimated to be 6 billion kronor to 8 billion kronor.

Full-year sales are expected to be negatively impacted by up to 10 billion kronor by 2019, by addressing low-performing operations within Managed Services and optimizing the offering within Network Roll-out.