(CercleFinance.com) – Ericsson on Wednesday published operating profit down 19% for the third quarter mainly due to an increase in its supply costs in a context described as ‘inflationary’.
The mobile network equipment manufacturer reported this morning a gross operating surplus (Ebit) of 7.1 billion crowns (650 million euros) over the period from July to September, against a result of 8 .8 billion a year earlier.
Its net profit stands at 5.4 billion crowns, against 5.8 billion a year earlier.
Revenue was NKr 68 billion, up 21% year-on-year, including growth of 3% at constant scope and currency.
The gross margin fell to 41.4%, against 44% a year earlier, while the operating margin (Ebita) fell to 11.2%, compared with 16.5% a year earlier.
In its press release, the Swedish group reiterates its objective of an operating margin of between 15% and 18% over the long term, a figure it intends to reach by 2024 at the latest, while specifying that achieving this target will require additional efforts in terms of cost reduction.
At 9:40 am, the title lost more than 13% in reaction to these results below expectations, signing by far the worst performance of the OMXS30, the flagship index of the Stockholm Stock Exchange.
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