Ericsson reports underlying positives in Q412 despite ST-Ericsson charge

Ericsson reported a loss for the fourth quarter of 2012, resulting from its anticipated SEK8 billion (US$1.27 billion) charge related to its ST-Ericsson joint venture. But the results were well received, due to the fact that there are positive signs for its core operations as 2013 progresses.

Hans Vestberg, president and CEO, noted in a statement that during the last year the company’s performance had been mixed, with its Networks unit in particular having a “challenging” twelve months.

Ericsson reported a fourth quarter net loss of SEK6.3 billion, compared with a profit of SEK1.5 billion in Q4 2011, on revenue of SEK66.9 billion, up five per cent from SEK63.7 billion.

For the full year, it saw a profit of SEK5.9 billion, compared with a prior-year profit of SEK12.6 billion, on sales of SEK227.8 billion, compared with SEK226.9 billion.

In Q4, sales in its Networks business were SEK35.3 billion, up six per cent year-on-year, with this growth “mainly driven by North America”.

CDMA sales were down 18 per cent year-on-year (although up over the previous quarter due to “temporary capacity needs”), with the company noting that this business is “expected to continue to decline as North American operators continue their transition to LTE”.

Global Services sales increased by four per cent year-on-year to SEK28 billion, to represent 42 per cent of group sales in the quarter.

Separately, ST-Ericsson reported a Q4 net loss of US$169 million, compared with a loss of US$241 million in Q411, on sales of US$358 million, down from $409 million.