(AOF) – Ericsson fell from 8.79% to 89.04 Swedish crowns, undergoing his worst day on the markets for more than a year and a half. The telecom supplier has reported an adjusted operational profit below expectations in the fourth quarter. Operational profit amounts to 9.8 billion crowns, compared to 7.4 billion the previous year, where consensus was tapped on 10.3 billion crowns. The Swedish group returned to profits in 2024, to 400 million crowns
After posting a loss of 26.1 billion crowns in 2023.
With regard to net sales, these increased by 1% to 72.9 billion crowns in the fourth quarter, exceeding the consensus fixed at 72.5 billion crowns.
The demand for American companies like AT&T and Verizon has notably increased quarterly sales of 54% on American soil, its key market.
The concerns remain concerning the customs rights envisaged by the Trump administration. “We do not know what will happen. I think everyone is waiting to see what is going on there,” said Lars Sandström, Group financial director, in Reuters.
In Asia, sales recorded a two -digit decline, mainly in India, where demand dropped after strong growth in 2023.
-Over the entire year, turnover fell 6% to 247.9 billion crowns.
“Progress in terms of operational excellence has continued, with a commercial discipline and efficiency actions of the supply chain which supported a high gross adjusted margin of the group of 46.3% during the quarter”, estimated the CEO of the group Börje Ekholm.
Ericsson remains cautious about the prospects for the telecoms market in 2025, simply indicating that he sees “stabilization signs” of the Radio Access Networks (RAN), a key element of telecoms infrastructure.
Ericsson proposed a dividend of 2.85 crowns per share for 2024, against 2.70 crowns in 2023.
