LM Ericsson Telephone CompanyNASDAQ
Fri, Oct. 21, 4:08 AM
- Ericsson's (NASDAQ:ERIC) shares are -3.4% in Stockholm after the telecom-network provider reported a loss of 233M kronor ($26M), more than double estimates of 112M kronor. Last year the company made a profit of 3.1B kronor.
- Operating profit collapsed 93% to 300M kronor and revenue dropped 14% to 51.1B kronor as Ericsson, which is without a CEO, continued to struggle with an industry slump and intense competition.
- "Ericsson suffers from a bloated cost base, major dysfunctions and an empty CEO seat," says Bernstein analyst Pierre Ferragu, although he added that the company's market position remains strong.
Thu, Oct. 20, 5:30 PM
Wed, Oct. 19, 12:17 PM
- Ericsson (ERIC -1.1%) may be looking outside of telecoms for its new CEO, a source tells Reuters, after the company looks past well-discussed, more obvious candidates.
- That comment came in response to a newspaper column today raising the prospect that Saab chief Hakan Buskhe could be in the running. "I understand there is a person on the short list but that it is not so easy to get the person concerned," the source said.
- CEO Hans Vestberg stepped down in July after key shareholders began pushing for an ouster.
- The conventional-wisdom short list for a replacement points at the company's Australia-based Hakan Eriksson, former company CFO Karl-Henrik Sundstrom and Vodafone CTO Johna Wibergh (also a two-decade Erisson veteran).
- Meanwhile, the CEO search is the company's top priority, according to Ericsson's biggest shareholder. Johan Forssell, chief of Investor AB, says: “It needs to be a good leader, someone with strategic abilities, considering the large technology shifts that are happening in this industry ... It’s also an advantage to have the ability to understand the technology.”
- Shares are down nearly 25% over the past week.
Thu, Oct. 13, 5:35 PM
Wed, Oct. 12, 6:36 PM
- Ericsson (NASDAQ:ERIC) finished a brutal day post-profit warnings, losing 20.8% of market value in U.S. trading. That brings the stock to an eight-year low.
- The company said sales fell 14% in Q3, and that may be just the beginning. More job losses are likely on the heels of 3,000 cuts announced last week.
- Cost cuts aren't likely enough, says Cowen's Paul Silverstein, who reiterated a Market Perform rating and $6 price target (ERIC closed at $5.55 today on Nasdaq): "ERIC reiterated its commitment to previously announced 10B SEK cost reduction program; however, we suspect that it is likely to be insufficient to right-size the business and improve operating profitability. We also expect decreasing network sales and increasing mix of services to continue to create a challenging environment for gross and operating margins."
- Ericsson faces a double whammy of declining broadband demand and internal problems as well, including a heavy cost structure and gaps in its product line. While Ericsson leads in mobile gear, it trails rival Nokia in fixed-line and broadband equipment.
- Nokia (NOK, Ericsson's only publicly traded peer) took its own hit today, declining 5.6%.
Wed, Oct. 12, 3:01 PM
Wed, Oct. 12, 12:43 PM
Wed, Oct. 12, 9:15 AM
Wed, Oct. 12, 4:36 AM
Thu, Oct. 6, 7:36 PM
- Orange (ORAN -1.4%) and Ericsson (ERIC +0.3%) are teaming up to develop 5G solutions.
- The two are developing and testing "selected" 5G use cases -- including multi-gigabit Internet in suburban and rural environments, Internet of Things applications and connected cars -- using the telecom's network and Ericsson's 5G tech. It will also cover 4G-to-5G solutions evolution.
- "The partnership will enable 5G technology building blocks, proof of concepts, and pilots across Europe from 2017 onwards," the companies say.
- "Our ambition is to be prepared for a 5G deployment in 2020," says Orange's Alain Maloberti.
Tue, Oct. 4, 4:48 AM
- Ericsson (NASDAQ:ERIC) says it will eliminate 3.9K jobs in its home nation of Sweden as it looks to cut costs and stay competitive in the long term.
- Slowing demand for 4G mobile network infrastructure has taken a toll on Ericsson recently as the industry preps for 5G development.
- Shares of Ericsson are down 25% this year in Stockholm trading.
Fri, Sep. 30, 11:53 AM
- Ericsson (ERIC +1.8%) is making a change at chief HR officer, as Bina Chaurasia resigns the position.
- The California-based Chaurasia will exit effective Nov. 15, and the company will move the position to group headquarters in Sweden, closer to the CEO and the rest of the executives ahead of "heavy transformation work needed."
- Chaurasia has been "instrumental in reshaping Ericsson’s Human Resource function and developing Ericsson’s People Strategy during a period of massive business transformation," says CEO Jan Frykhammar.
- Maj-Britt Arfert has been named acting chief HR officer as the company searches for a successor.
Mon, Sep. 26, 12:53 PM
- Liberty Global (LBTYA -3%) is partnering with Ericsson (ERIC -0.3%) to push DVR services in Latin America.
- The expansion comes via Liberty's VTR (in Chile) and Liberty Cablevision of Puerto Rico, part of the company's LiLAC Group (LILAK -0.8%, OTCPK:LILAB). The two hope to capitalize on shifting tastes in the region for time-shifting television watching and for consumer mixing and matching services.
- The push will utilize Ericsson's Video Storage and Processing Platform, which aims to simplify TV recording capabilities
Wed, Sep. 21, 6:57 PM
- Ericsson (ERIC +1.3%) will shutter the last of its Swedish plants, resulting in 3,000 job cuts, according to daily Svenska Dagbladet.
- That ends 140 years of production in Sweden, dating to telegraph days. The 3,000 employees make up just about 2.5% of the company's workforce.
- The company employs about 17,000 workers in Sweden. Svenska Dagbladet said that manufacturing facilities in Boras and Kumla, which focused on the company's network products division (the company's biggest) will be closed.
Tue, Sep. 20, 1:52 PM
- Ericsson (NASDAQ:ERIC) has combined its strategy and technology functions, naming Ulf Ewaldsson its new chief strategy and technology officer, as well as head of Group Function Strategy and Technology.
- Chief Strategy Officer Rima Qureshi has been holding that role along with an appointment July 1 as head of the North America region. Qureshi will focus on that role in North America, and the company's strategic partnership with Cisco Systems.
- Both will be on the Executive Leadership team and report to CEO Jan Frykhammar.
- Ewaldsson has more than 20 years of experience in product management, industry development and customer relationships.
Thu, Sep. 15, 5:36 PM