Ericsson outlook static in second quarter

Swedish telecoms equipment maker Ericsson has not changed its market outlook since its second quarter report in July despite …

Swedish telecoms equipment maker Ericsson has not changed its market outlook since its second quarter report in July despite winning some large orders since, Ericsson's chief executive said today.

In the second quarter report presented on July 18th, Ericsson said that although the market for mobile systems - the segment where the Swedish company is the world leader - was unlikely to deteriorate any further, it would still be more than 10 per cent smaller in dollar terms than in 2002.

Ericsson would not then forecast when the market could change for the better.

"We gave a (market) picture at the second quarter and it is very much the same we are looking at (now)," Mr Carl-Henric Svanberg said today.

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Since the report, Ericsson has announced a $600 million order from China Mobilcom, a five-year mobile phone equipment contract from US Rural Cellular Corporation of an undisclosed value, a GSM network order from Bangladesh's GrameenPhone, and 3G network deals from Vodafone and Cosmote in Greece.

It also got a wireless network order from Cincinnati Bell Wireless, a $32 million deal from China's Guangdong Mobile Communication Corp, a $125 million order from SingTel and a deal of an undisclosed value from AT&T Wireless Services for a 3G network.

Like other companies in the telecoms equipment sector, Ericsson has been grappling with a spending freeze from telecoms operators for more than two years. It has more than halved its workforce, sold off non-core businesses and changed CEO four times in five years.