Ericsson Posts 4Q Net Profit Beat as 5G Momentum Continues
January 25 2022 - 2:06AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Ericsson AB on Tuesday posted a fourth-quarter net
profit that beat expectations, as strong sales of 5G equipment in
North America, Europe and Latin America helped offset a hefty sales
decline in mainland China.
The telecommunications-equipment company reported net profit
attributable to shareholders of 10.08 billion kronor ($962.4
million), compared with SEK7.52 billion a year earlier.
Sales rose 2.5% to SEK71.33 billion despite the heavy sales fall
in mainland China and a drop in patent royalties as
intellectual-property income was weighed on by an expired licensing
contract, the company said.
Analysts polled by FactSet had expected net profit of SEK6.5
billion on sales of SEK67.77 billion.
Mainland China sales within networks fell by SEK1.5 billion on
year, though overall sales of network equipment grew organically by
3%, the company said.
"We expect fundamentals to remain strong in our core mobile
infrastructure business during 2022," Chief Executive Borje Ekholm
said.
Ericsson said the group earnings before interest and taxes
target for 2022 of 12% to 14% remains, though its key focus is now
to accelerate toward reaching its long-term Ebita margin target of
15% to 18% no later than in two to three years.
Ericsson proposed a 2021 dividend of SEK2.50, from SEK2.00.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
January 25, 2022 01:51 ET (06:51 GMT)
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