Ericsson reports continued losses
Ericsson reported a loss for the fourth quarter, the fifth consecutive quarter to has done so. The loss was 8.3 billion kronor (€1.1bn) which compared with a net loss of 3.5 billion kronor (€470m) for the same period in 2001. Its loss was larger than expected.
Ericsson's is now the world's largest maker of infrastructure for mobile telecommunications, (it has 30% of the market) from which it obtains 80% of its revenues. This sector has been particularly hard hit as wireless operators cut spending. Its focus has moved away from handsets, a market where its share has fallen from 20% to 5%.
The company warned that for the present quarter its sales would be down by around 30% from the previous three months, though its CEO Kurt Hellstrom said that the company should return to profit by Q4, 2003 as it continues to cut costs.
