Ericsson Q3 sales downStaff Writer | October 20, 2017
Ericsson reported third quarter results 2017. Reported sales decreased by -6% YoY. Sales adjusted for comparable units and currency declined by -3%. Networks sales declined by -4% YoY.
Gross margin was 25.4% (28.3%). Adjusted1) gross margin was 30.0% (29.4%) driven by increased adjusted1) gross margin in Networks.
Operating income was SEK -4.8 (0.3) b. Adjusted1) operating income declined to SEK 0.0 (1.6) b.
Higher amortization than capitalization of development expenses and higher recognition than deferral of hardware costs had a negative impact on operating income of SEK -1.5 (0.5) b.
As communicated in the second quarter report 2017, the company identified an increased risk of further market and customer project adjustments.
In the quarter provisions and adjustments were made impacting operating income by SEK -2.3 b., with limited effect on cash flow.
As a result of the ongoing cost reductions, restructuring charges of SEK -2.8 (-1.3) b. were taken in the quarter.
This included a write-down of SEK -1.6 b. related to the decision to close and divest the ICT center in Canada.
Cash flow from operating activities was SEK 0.0 (-2.3) b. Free cash flow2) was SEK -0.5 (-5.0) b. Net cash per Sept. 30, 2017, was SEK 24.1 (16.3) b. ■