STOCKHOLM, SWEDEN -- (Marketwire) -- 01/31/13 --
Fourth quarter highlights
* Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6%YoY driven mainly by North America. QoQ Networks sales grew 31%, primarilydue to normal higher year-end business activity
* Operating margin excl. JVs improved to 7.1% (6.4%) YoY mainly driven byincreased Networks sales, offset by continued efficiency measuresgenerating restructuring charges with a negative impact on operating marginof close to -3%-points (-1%)
* Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash chargerelated to ST-Ericsson of SEK -8.0 b. as previously communicated and areduction of deferred tax assets of SEK -0.5 b. related to loweredcorporate tax rate in Sweden
* EPS diluted SEK -1.99 (0.36). EPS Non-IFRS and excluding ST-Ericssoncharge SEK 1.07 (0.81)
* Cash flow from operations increased to SEK 15.7 b. driven by reducedworking capital.
Full year highlights
* Sales were flat YoY with growth in Global Services and Support Solutions,while Networks sales declined partly due to the 40% decline of CDMAequipment sales
* Operating margin, excluding JVs, was flat at 9.7% (9.6%). Excluding thegain related to the divestment of Sony Ericsson operating margin was 6.4%
* Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericssongain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.
* EPS diluted SEK 1.78 (3.77). EPS Non-IFRS SEK 3.55 (5.54)
* Cash flow from operations SEK 22.0 b. Full year cash conversion of 116%,above the target >70%
* Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) pershare.
--------------------------------------------------------------------------- Full Full Full Q4 Q4 YoY Q3 QoQ year year year SEK b. 2012 2011 Change 2012 Change 2012 2011 Change--------------------------------------------------------------------------- Net sales 66.9 63.7 5% 54.6 23% 227.8 226.9 0%--------------------------------------------------------------------------- Of which Networks 35.3 33.3 6% 26.9 31% 117.3 132.4 -11%--------------------------------------------------------------------------- Of which Global 16% Services 28.0 27.0 4% 24.3 15% 97.0 83.9--------------------------------------------------------------------------- Of which Support 26% Solutions 3.6 3.4 6% 3.3 9% 13.5 10.6--------------------------------------------------------------------------- Gross margin 31.1% 30.2% - 30.4% - 31.6% 35.1% ---------------------------------------------------------------------------- EBITA margin excl JVs and Sony Ericsson sale 8.8% 8.1% - 8.7% - 8.4% 11.6% ---------------------------------------------------------------------------- Operating income Excl JVs and Sony Ericsson sale 4.8 4.1 17% 3.7 30% 14.5 21.7 -33%--------------------------------------------------------------------------- Operating margin Excl JVs and Sony Ericsson sale 7.1% 6.4% - 6.7% - 6.4% 9.6% ---------------------------------------------------------------------------- EBITA margin excl JVs 8.8% 8.1% - 8.7% - 11.7% 11.6% ---------------------------------------------------------------------------- Operating income excl 2% JVs 4.8 4.1 17% 3.7 30% 22.2 21.7--------------------------------------------------------------------------- Operating margin excl - JVs 7.1% 6.4% - 6.7% - 9.7% 9.6%--------------------------------------------------------------------------- Of which Networks 8% 8% - 5% - 6% 13% ---------------------------------------------------------------------------- Of which Global - Services 6% 6% - 8% - 6% 7%--------------------------------------------------------------------------- Of which Support - Solutions 8% 0% - 14% - 9% -5%--------------------------------------------------------------------------- Operating income incl JVs -3.8 2.2 - 3.1 - 10.5 17.9--------------------------------------------------------------------------- Of which ST-Ericsson -8.5 -0.8 - -0.6 - -11.7 -2.7 ---------------------------------------------------------------------------- Income after Financial items -3.9 1.8 - 3.2 - 10.2 18.1--------------------------------------------------------------------------- Net income -6.3 1.5 - 2.2 - 5.9 12.6--------------------------------------------------------------------------- EPS diluted, SEK -1.99 0.36 - 0.67 - 1.78 3.77 -53%--------------------------------------------------------------------------- EPS (Non-IFRS), -36% SEK(1)) -1.40 0.81 - 1.04 - 3.55 5.54--------------------------------------------------------------------------- Cash flow from 121% operations 15.7 5.5 187% 7.0 125% 22.0 10.0--------------------------------------------------------------------------- Cash conversion 227% 79% - 149% - 116% 40% ---------------------------------------------------------------------------- Net cash, end of -2% period 38.5 39.5 -2% 29.0 33% 38.5 39.5--------------------------------------------------------------------------- (1)) EPS, diluted, excl. amortizations, write-downs of acquired intangible assets, restructuring Twelve months 2012 includes a gain from the divestment of Sony Ericsson of SEK 7.7 b.---------------------------------------------------------------------------
