- Ericsson (BS:ERICAs) (ERIC -4.4%) is taking charges of 6.1B kronor (about $687M) in its Q4 results in order to rearrange its Business Support System unit and cut losses there.
- Of that amount, 3.1B kronor ($349M) is set for restructuring charges, the company says.
- The Digital Services segment has yet to join the rest of the company in its turnaround, the company says, and that's jeopardizing the unit's overall profitability target for 2020.
- The provisions mainly relate to estimated costs associated with expected changes in project scopes -- including customer compensation payments, provisions for project delays, and write-down of intangible assets.
- The moves will "materially" cut losses in BSS as soon as this year. And the company anticipates another 1.5B kronor ($169M) in charges to come in 2019, including related headcount reductions.
- More details will be provided along with earnings on Jan. 25.
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