Ericsson Q4 Net Sales Up 8%
For the fourth quarter of 2010, the company posted a net income of SEK4.4 billion, or SEK1.34 per diluted share, compared to SEK0.7 billion, or SEK0.1 per diluted share, for the same period in 2009.
For the full year of 2010, the company posted a net income of SEK11.2 billion, compared to SEK4.1 billion. Net sales were SEK203.3 billion, compared to SEK206.5 billion in the same period of 2009.
Gross margin in the quarter, excluding restructuring, increased year-over-year to 37 percent (35 percent) and was down from 39 percent sequentially. Operating expenses for the quarter amounted to SEK15.2 (14.0) billion, excluding restructuring charges.
Operating expenses for the full year amounted to SEK55.2 (52.9) billion, excluding restructuring charges. Full year gross margin, excluding restructuring, increased to 38 percent (36 percent), due to business mix with upgrades and expansions and cost reductions. Other operating income and expenses were SEK0.6 (0.9) billion in the quarter and SEK2 (3.1) billion for the full year.
Hans Vestberg, president and CEO of Ericsson, said: â€œGroup sales in the quarter increased eight percent year-over-year and 32 percent sequentially mainly driven by a strong development in mobile broadband. Sales in Networks increased 14 percent year-over-year and 40 percent sequentially, primarily driven by increased demand for mobile broadband and investments in 2G expansions in China.
â€œGlobal services sales decreased -1 percent year-over-year and increased 20 percent sequentially. Our strategy to strengthen our position in key markets such as the US and Korea as well as increased footprint in the ongoing network modernization has also been successful during the year.â€
Will the company further increase net sales in Q1?
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