News Column

Ericsson reports second quarter results 2013

Page 2 of 1


STOCKHOLM, SWEDEN -- (Marketwired) -- 07/18/13 --

Second quarter highlights

* Sales were flat YoY at SEK 55.3 b. For comparable units and adjustedfor FX, sales increased 7% YoY and 6% QoQ. * Operating income incl. JV was SEK 2.5 (2.1) b. with an operating marginof 4.5% (3.8%). * The quarter was negatively impacted by one-time items of SEK -0.9 b.from losses due to divestments and exiting the telecom and power cable operations. * Net income was SEK 1.5 (1.2) b. * EPS diluted was SEK 0.45 (0.34). EPS Non-IFRS was SEK 0.88 (0.78). * Cash flow from operating activities was SEK 4.3 b.

--------------------------------------------------------------------------- Q2 Q2 YoY Q1 QoQ 6 months 6 months SEK b. 2013 2012 Change 2013 Change 2013 2012---------------------------------------------------------------------------Net sales 55.3 55.3 0% 52.0 6% 107.4 106.3---------------------------------------------------------------------------Of which Networks 28.1 27.8 1% 28.1 0% 56.3 55.1---------------------------------------------------------------------------Of which Global Services 24.9 24.1 3% 21.5 16% 46.3 44.7---------------------------------------------------------------------------Of which Support Solutions 2.3 3.5 -33% 2.4 -4% 4.8 6.5--------------------------------------------------------------------------- Gross margin 32.4% 32.0% - 32.0% - 32.2% 32.6%---------------------------------------------------------------------------Operating income excl JV 2.5 3.3 -24% 2.1 17% 4.6 13.8---------------------------------------------------------------------------Operating margin excl JV 4.5% 5.9% - 4.1% - 4.3% 13.0%---------------------------------------------------------------------------Of which Networks 5% 5% - 6% - 5% 5%---------------------------------------------------------------------------Of which Global Services 6% 6% - 3% - 5% 6%---------------------------------------------------------------------------Of which Support Solutions -12% 12% - -1% - -7% 6%---------------------------------------------------------------------------Operating income incl JV 2.5 2.1 19% 2.1 17% 4.6 11.2---------------------------------------------------------------------------Operating margin incl JV 4.5% 3.8% - 4.0% - 4.3% 10.5%--------------------------------------------------------------------------- Net income 1.5 1.2 26% 1.2 26% 2.7 10.0--------------------------------------------------------------------------- EPS diluted, SEK 0.45 0.34 32% 0.37 22% 0.82 3.10---------------------------------------------------------------------------EPS (Non-IFRS), SEK(1)) 0.88 0.78 13% 0.99 - 1.88 3.91---------------------------------------------------------------------------Cash flow from operating activities 4.3 -1.4 - -3.0 - 1.3 -0.6---------------------------------------------------------------------------Net cash, end of 25.9 period 27.4 25.9 6% 32.2 -15% 27.4--------------------------------------------------------------------------- (1) EPS, diluted, excl. amortizations, write-downs of acquired intangible assets and restructuring---------------------------------------------------------------------------


"Sales for comparable units, adjusted for FX, grew 7%. Reported sales wereflatYoY, due to continued currency headwind," said Hans Vestberg, President andCEOof Ericsson (NASDAQ: ERIC).

"There was continued high project activity in Europe as well as in NorthAmericawhere two large mobile broadband coverage projects have peaked in firsthalf2013. North East Asia had another challenging quarter following continuedstructural decline in GSM investments in China, FX in Japan and lowerbusinessactivity in South Korea due to spectrum delays.

The business mix, with a higher share of coverage projects than capacityprojects, started to shift slightly towards more capacity during thequarter.

We implemented our strategy to capture new market share in the networkmodernization projects in Europe starting in 2010, despite their initiallowermargins. Now that these projects gradually come to an end, we can concludethatwe have been successful in gaining market share and regained leadership inEurope. It is also encouraging to see that we are now starting to engage innewbusiness, based on this footprint, regarding capacity and LTE projects inEurope.

We continue to strengthen our leading position in 4G/LTE. The vendorselectionprocesses for 4G/LTE in Russia and China continue and to date we have beenawarded contracts by two large operators in Russia.

During the quarter we also reached one billion subscribers in networksmanagedby Ericsson. This clearly shows the confidence our customers have in ourabilityto create value for them.

Profitability improved YoY, adjusted for one-time effects related toexiting thetelecom and power cable operations and the divestment of AppliedCommunicationSciences (ACS). The improvement was driven by higher gross margins andloweroperating expenses. This was partly offset by currency headwind.

With the announcement in April and July of the intended acquisitions ofMicrosoft's Mediaroom and Red Bee Media, we continue to strengthen ourpositionin TV and media. As TV and media converge with telecom we can leverage ourstrength in media management and managed services. Video is already thesinglelargest contributor to traffic in mobile networks and is expected to growby60% annually until 2018.

While the macroeconomic situation in Europe remains challenging and thepolitical uncertainty in parts of Region Middle East, such as Egypt,increases,the long-term fundamentals in the industry remain attractive and we arewellpositioned to continue to support our customers in a transforming ICTmarket,"concludes Vestberg.


You find the complete report with tables in the attached PDF or byfollowingthis or

Ericsson invites media, investors and analysts to a press conference at theEricsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),July 18, 2013. Ananalysts, investors and media conference call will begin at 15.00 (CET).

Live webcast of the press conference and conference call as well assupportingslides will be available at

Video material will be published during the day

Ericsson discloses the information provided herein pursuant to theSecuritiesMarkets Act. The information was submitted for publication at 07.30 CET, onJuly18, 2013.

Ericsson second quarter report 2013:

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[HUG#1717283]


Helena Norrman
Senior Vice President, Communications
Phone: +46 10 719 34 72
E-mail: Email Contact


Asa Konnbjer
Director, Investor Relations
Phone: +46 10 713 39 28
E-mail: Email Contact

Stefan Jelvin, Director, Investor Relations
Phone: +46 10 714 20 39
E-mail: Email Contact

Rikard Tunedal, Director, Investor Relations
Phone: +46 10 714 54 00
E-mail: Email Contact


Ola Rembe
Vice President, Head of External Communications
Phone: +46 10 719 97 27
E-mail: Email Contact

Corporate Communications
Phone: +46 10 719 69 92
E-mail: Email Contact

Story Tools Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters