MANILA, Philippines - Ericsson’s group sales declined eight percent in the second quarter from a year ago level with lower sales in networks. Sales in global services were also flat due to decline in network rollout although professional services increased five percent, according to Hans Vestberg, president and CEO of Ericsson.
“Group sales increased sequentially by six percent. Sales for comparable units, adjusted for currency exchange rate effects and hedging declined year-over-year 15 percent. Operators showed a continued good demand for mobile broadband driven by smartphone and laptop usage. Sales were however impacted by continued industry component shortages and supply chain bottlenecks,” Vestberg said.
Gross margin improved year-on-year and sequentially due to business mix and efficiency gains. Cash flow declined year-on-year, mainly due to increased working capital. Sony Ericsson continued to show improved results and ST-Ericsson’s transition program is on track.
Net income improved year-on-year and sequentially, positively impacted by improved earnings in Sony Ericsson.
The market conditions we saw in the second half of 2009 with mixed operator investment behavior prevailed also in the first half of this year. In the quarter all regions, except North America, showed lower year-over-year sales.