Telefonaktiebolaget LM Ericsson (OMX: ERIC B, NASDAQ: ERIC) highlighted good demand for mobile broadband and services in its Q1 2012 interim report. The Swedish company has gained further market share and now boasts 38% share of mobile networks contracts. Divestment of Sony Ericsson and new strategy for ST-Ericsson are the two major highlights of the quarter as poor joint venture performance has been hampering the company turnaround.
Net sales were down 4% year-on-year and 20% seasonally to 51 billion SEK on a major decline in CDMA sales and lower operator spending. Revenues were split evenly among Global Services and Support Solutions segments. Gain from Sony Ericsson divestment pushed net income to 8.8 billion. Without that one-off gain, the result would have just broken par. EPS came in at 3.14 SEK.
EBITA margin excluding the divestment almost halved to 7.7%. Cash flow from operations was marginally positive. Annual General Meeting is on May 3th and a dividend of 8.2 SEK is being suggested. The stock is up 4% in early trading.
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