Ericsson has posted its fourth consecutive money-losing quarter, with an operating loss of 4.8 billion Swedish crowns (€498.1 million) that was 37 per cent worse than the average loss estimated by analysts.
Third-quarter sales of 47.8 billion crowns were down 3 per cent in constant currencies and the company warned its usual year-end sales bounce would not be as big as in previous years.
While Ericsson cut 3,000 jobs during the third quarter, it added 1,100 recruits in research and development in order to be ready to meet eventual demand for 5G networks.
Sales were stable in North America while growing in Brazil and the Middle East, but these positive trends were offset by a decline in China
“We see a stabilised performance in a challenging market. We also see signs of improvements in our performance,” Chief Executive Boerje Ekholm said on a conference call. “Yes, there is still a long way to go … but we are also seeing signs that we are stabilising our performance and that we are getting control of our projects and products.”