October 19, 2021
STOCKHOLM (Reuters) – Sweden’s Ericsson reported third-quarter core earnings above market estimates on Tuesday, as strong sales of 5G equipment in most of the world offset a loss of market share in mainland China.
The company’s quarterly adjusted operating earnings rose to 8.8 billion Swedish crowns ($1.02 billion) from 8.6 billion a year ago, beating the mean forecast of 7.85 billion, according to Refinitiv estimates.
While both Ericsson and its rival Nokia has benefited from the ban on China’s Huawei in several countries, the banning of the Chinese company in Sweden led to a loss contracts for the Swedish company in China.
Ericsson gets just under 10% of its revenue from China.
“As a consequence of the reduced market share in mainland China, we are planning to resize our sales and delivery organization in the country, starting in the fourth quarter,” Chief Executive Börje Ekholm said in a statement.
Sales in mainland China in Networks and Digital Services declined 3.6 billion crowns in the quarter.
Total revenue for the telecom equipment maker, a rival of Huawei and Nokia, fell 2% to 56.3 billion crowns, missing the 58.14 billion crowns seen by analysts.
($1 = 8.6258 Swedish crowns)
(Reporting by Supantha Mukherjee, editing by Anna Ringstrom and Kim COghill)
Source: One America News Network
