Ericsson published a report for the first quarter of 2017
Ericsson, one of the largest manufacturers of communication equipment, has published a report for the first quarter of 2017.
The report shows that for the year quarterly revenue decline of 11% from 5.44 to 4.84 billion euros. And given the changes in the exchange rate (report metrics are shown in Swedish kronor) and the reduction is as high as 16%. Compared with the previous quarter income decreased by 29%.
Operating profit a year ago, amounting to 0.36 billion euros in the last quarter gave way to an operating loss of $ 1.28 billion euros. Accordingly, the value of operating margin of 6,7% turned into -26,6%.
The CEO of the company, commenting on the quarter, admitted that «the performance in the first quarter remained poor». The division of the Networks showed good results even with the sales decline, but the losses from the operation of units IT & Cloud and Media has increased significantly. Guide Ericsson calls priority «improvement of profitability», which must be solved simultaneously by taking steps «to rebuild its technological and market leadership.»