Ericsson Reports Second Quarter Results 2017


Reported sales decreased by -8% YoY. Sales, adjusted for comparable units and currency, decreased by -13% YoY. The RAN equipment market for 2017 is estimated to show a high single-digit percentage decline compared with previous estimate of -2% to -6%. Gross margin was 27.9% (32.3%). Gross margin, excluding restructuring charges, was 29.8% (33.2%). Operating income was SEK -1.2 b. Operating income, excluding restructuring charges was SEK 0.3 b., with a YoY decline in all segments. Networks operating margin was 7%. Operating margin, excluding restructuring charges, declined to 10% (13%) negatively impacted by continued lower software sales. IT & Cloud operating income was negatively impacted by less capitalization of development expenses QoQ and YoY. Planned cost reduction activities will be accelerated, due to current market environment, to achieve an annual run rate reduction of at least SEK