STOCKHOLM, SWEDEN -- (Marketwired) -- 05/03/13 --
* Ericsson has signed a conditional agreement with Danish company NKTCables to divest its power cable operation
* As a result of the agreement, about 320 employees and consultants,primarily based in Sweden, will transfer to NKT Cables
* The value of the transaction is SEK 250 million and closing is expected during the beginning of the third quarter, 2013
The transaction is subject to relevant regulatory approvals.
NKT Cables is one of the largest power cable manufacturers in Europe.Ericsson(NASDAQ: ERIC) believes that the power cable operation that currentlyresideswithin business unit Networks has potential to realize greater leverage andscale within NKT Cables where it will be core business.
The net sales for the power cable operation in 2012 was approximately SEK1.5billion.
The current best estimate is that the transaction will generate a net lossofapproximately SEK -100 million and will, with current time plan, negativelyimpact business unit Networks' operating income in the third quarter, 2013.
As a result of the agreement NKT Cables will take over a factory in Falun,Sweden.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video atwww.ericsson.com/press
Ericsson is a world-leading provider of communications technology andservices.We are enabling the Networked Society with efficient real-time solutionsthatallow us all to study, work and live our lives more freely, in sustainablesocieties around the world.
Our offering comprises services, software and infrastructure withinInformationand Communications Technology for telecom operators and other industries.Today40 percent of the world's mobile traffic goes through Ericsson networks andwesupport customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden.In2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion).Ericssonis listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
Ericsson divests its power cable operation to NKT Cables:http://hugin.info/1061/R/1699030/560327.pdf
This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: Email Contact
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: Email Contact
Most Popular Stories
- MasterCard to Split Shares, Raise Dividend
- Bipartisan Negotiators Reach Modest Budget Agreement
- Justin Bieber Visits Typhoon Victims, Plays Concert
- Russia Says Nyet to Canada North Pole Claim
- AIG to Create 230 Jobs in Charlotte
- Senate Dems Move Forward With Obama Nominees
- GOP, Dems Strain to Unearth a Modest Budget Pact
- Obama Nominee Confirmed for D.C. Appeals Court
- New Obama Aide to Focus on Climate Change
- Office Depot Moving HQ to Florida