STOCKHOLM, SWEDEN -- (Marketwired) -- 04/09/13 --
* In a challenging 2012 for the industry, President and CEO Hans Vestberg says Ericsson showed continued stable performance * Sustainability VP Elaine Weidman-Grunewald joined Vestberg onstage to talk about increasing affordability and access of mobile broadband as well as strengthened commitment to conducting business responsibly * Head of Networks Johan Wibergh demonstrated Ericsson's ability to ensure that people get superior performance, whether speaking, listening to music, or watching video on mobile devices
Ericsson (NASDAQ: ERIC) President and CEO Hans Vestberg presented anoverview ofthe company's 2012 financial performance, key business developments andgovernance framework at the Annual General Meeting of Shareholders inStockholm,Sweden.
Vestberg said: "Our sales in 2012 were basically flat compared to 2011. Wereported sales of SEK 227.8 million for the year, which is more than 600millionper day. We saw variation in growth for the different segments, but overallweare not satisfied with profitability."
For two of Ericsson's three business segments, Global Services and SupportSolutions, business grew and Vestberg highlighted a new acquisition withinIPTV.
"We help our customers create and deliver TV and video services with thebestpicture quality and end-user experience for interactive TV services. Our TVsolutions now have over 2000 customers globally. Yesterday we announced theacquisition of Microsoft's IPTV solution, called Mediaroom, which will makeEricsson the leading provider of IPTV and multi-screen solutions with amarketshare of over 25%," he said.
From 2011 to 2012, sales grew 16% for Global Services. The segment, with60,000employees, represents more than half of Ericsson's global workforce. Keydealswithin Managed Services were highlighted during the shareholders' meetingandVestberg said that customers are seeking more consulting and systemsintegrationcapabilities.
Within Networks, Ericsson remains market leader with 35% of mobile networkequipment market and has twice the size of installed base as the number twoandthree-ranked players combined. While 2011 was stronger than 2012 forNetworks,the segment represents 51% of the company's sales, and during the year,Ericssonwon key deals for LTE delivery in North East Asia, Brazil, and NorthAmerica.
Illustrating how the world is moving toward a Networked Society, Vestbergreviewed business deals from 2012 with industries such as shipping,utilities,and IT. "We stand strong in the transformation toward Information andCommunications Technology, successfully reshaping our business while notlosingsight of our unique competitive advantages," he said.
Wherever Ericsson works in the world, making a positive impact andconductingbusiness responsibly is prioritized. Vestberg invited Elaine Weidman-Grunewald,head of Sustainability and Corporate Responsibility, onstage to outline thehighlights of the newly-released 2012 Sustainability and CorporateResponsibility report.
Weidman-Grunewald said: "The theme of our report is Technology for Good,whichsummarizes our firm belief that mobile broadband is a transformationaltechnology that can help address global sustainability challenges.