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Ericsson taking $687M in Q4 charges; shares -4.4%

Published 01/10/2019, 09:41 AM
© Reuters.  Ericsson taking $687M in Q4 charges; shares -4.4%
ERICAs
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ERIC
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  • 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.
  • Now read: JD founder won't be charged; JD +5%


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