· Sales full year SEK 206.5 (208.9) b, stable for comparable units
· Operating income 1) excl JVs SEK 7.5 (9.0) 2) b, full year SEK 24.6 (23.4) b
· Operating margin 1) excl JVs 13% (13%) 2), full year 12% (11%)
· Share in earnings of JVs 1) SEK -0.4 (-0.6) b, full year SEK -6.1 (0.4) b
· Income after financial items 1) SEK 6.7 (9.5) b, full year SEK 18.8 (24.8) b
· Restructuring charges excl JV of SEK 4.3 (2.3) b, full year SEK 11.3 (6.7) b
· Net income SEK 0.7 (4.1) b, full year SEK 4.1 (11.7) b
· Earnings per share SEK 0.10 (1.21), full year SEK 1.14 (3.52)
· Cash flow 3) SEK 13.6 (7.9) b, full year SEK 28.7 (22.1) b
· The Board of Directors proposes dividend of SEK 2.00 (1.85) per share
1) Excluding restructuring charges
2) Excluding capital gain of SEK 0.8 b from divested Symbian shares in the fourth quarter 2008
3) Excluding cash outlays for restructuring cost that has been provided for of SEK 1.1 (1.0) b and dividends from Sony Ericsson of SEK 3.6 b for the full year 2008
CEO COMMENTS
"During the second half of 2009, Networks' sales were impacted by reduced operator spending in a number of markets. Group sales for the full year were less affected and the operating margin increased slightly," says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). "We maintained market shares well in all segments, cash flow was good and our financial position is strong. The services business performed well, and our joint ventures remain on track to return to profit.
The shift from voice telephony to mobile broadband investments continues. Users and traffic are increasing rapidly and will eventually connect billions of people to the internet. As previously stated, with this shift follows the anticipated decline in GSM sales, accelerated by the current economic climate, which is not yet offset by the growth in mobile broadband and investments in next-generation IP networks.
Current operator investment behavior varies between regions and countries. During 2009, operators in a number of developing markets, especially Central Europe, Middle East and Africa, became increasingly cautious with investments. Meanwhile, other markets including China, India and the US continued to show good development with major network buildouts. There is also a continued strong demand for services targeting the operational efficiency of operators, such as managed services and consulting.
During the year, we significantly strengthened our position in North America with key wins in both our networks and services businesses such as LTE to Verizon and Metro PCS and services to Sprint. The confidence TeliaSonera has shown in us by selecting our LTE solutions in the beginning of this year further confirms the technical quality of our solutions and strong services portfolio.
For 2010 we are determined to increase our efforts to combine our strong technology leadership position and service capabilities to provide value to our customers and ensure our continued healthy financial development," concludes Hans Vestberg.
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Labels: Ericsson
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