Ericsson hurt by profit warning
Wednesday, 17 October 2007
Shares in Ericsson have tumbled more than 25 per cent after the Swedish firm issued a shock profit warning.
The world's biggest mobile network maker said third-quarter sales, operating income and cash flow would fall way short of expectations, reports BBC.
The news sent its shares to a three-and-a-half-year low.
Ericsson blamed the drop on lower-than-hoped for sales in network upgrades and expansions which resulted in an unfavourable business mix. This raises some questions about their strategic direction and internal control Anders Berg, Evli Bank in Stockholm
Ericsson said in a preliminary report its operating earnings dropped 36% to 5.6bn Swedish crowns ($876m), from 8.8bn crowns a year ago.
The world's biggest mobile network maker said third-quarter sales, operating income and cash flow would fall way short of expectations, reports BBC.
The news sent its shares to a three-and-a-half-year low.
Ericsson blamed the drop on lower-than-hoped for sales in network upgrades and expansions which resulted in an unfavourable business mix. This raises some questions about their strategic direction and internal control Anders Berg, Evli Bank in Stockholm
Ericsson said in a preliminary report its operating earnings dropped 36% to 5.6bn Swedish crowns ($876m), from 8.8bn crowns a year ago.