Telecom giant Ericsson’s net profit plunged by half in 2012
2 Feb 2013 5:01 AM IST
Ericsson, a leading provider of telecom equipment to global markets, reported on Thursday that its net profit plunged by half last year, hit by a charge for its joint venture ST-Ericsson, but was confident about prospects this year as operators boost capacity. Ericsson said in December that it would book a charge of $1.25 billion after the announcement that French-Italian group STMicro was pulling out of ST-Ericsson.
The joint venture has not reported a single quarter of profits since being created at the beginning of 2009. In the fourth quarter of last year it reported a net loss of $133.0 million. The results for the fourth quarter were hit hard by the outcome at ST-Ericsson which Ericsson is reportedly seeking to sell.
Ericsson reported a net loss for the quarter of 6.462 billion kronor.
The joint venture has not reported a single quarter of profits since being created at the beginning of 2009. In the fourth quarter of last year it reported a net loss of $133.0 million. The results for the fourth quarter were hit hard by the outcome at ST-Ericsson which Ericsson is reportedly seeking to sell.
Ericsson reported a net loss for the quarter of 6.462 billion kronor.
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