Ericsson Posts First Net Loss in Four Years as Demand Wanes
- Company will implement further cost saving measures, CEO says
- Bernstein: ‘Bloated costs, dysfunctions, empty CEO seat’
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Ericsson AB reported its first loss in almost four years, wrapping up a disastrous third quarter that cratered the stock last week when the Swedish maker of wireless equipment reported preliminary figures.
The net loss totaled 233 million kronor ($26 million), the company said in a statement Friday. The average analyst estimate was for a loss of 112 million kronor. Ericsson surprised investors last week, reporting a 14 percent drop in third-quarter sales, and warning that its full results would significantly trail its forecasts.