By Kate Hanaghan, 25 January 2002 09:30
NEWS Ericsson has posted huge year-end losses but pledges to return to profit in 2002. The Swedish company made a pre-tax loss for the year of $2bn, although it maintained its market share despite experiencing a weaker financial year than arch-rival Nokia. Ericsson, like its peers, has been hit by a slump in demand from telcos who have tightened their belts in the face of the on-going economic slump. However, the news wasn't all bad. Ericsson's fourth quarter performance showed a reduction in losses on the previous quarter, beating market expectations. Following a restructuring scheme initiated last year, the company expects to return to operating profitability this year. This is despite a general drop in sales across the market. Its share price was down 1.4 per cent during early trading on the Swedish stock exchange.
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