Ericsson States Profit Losses

Swedish telecom giant Ericsson said Monday its net profit fell by 92 percent in the fourth quarter due to the costs of a restructuring plan in which 6,500 jobs will be cut.

Photo: Ericsson States Profit Losses

Ericsson reported a net profit of 314 million kronor (30.7 million euro, 43.4 million dollars) between October and December compared to 3.89 billion kronors in the same period in 2008, the company said in a statement.

The profit margin was much worse than expected as analysts polled by Dow Jones Newswires had forecast a net profit of 3.23 billion kronors.

Ericsson had planned to slash 5,000 jobs under a cost-cutting plan that was launched in January 2009, but the Swedish company said it would now lay off 6,500 people.

Ericsson is one of the largest Swedish companies, is a provider of telecommunication and data communication systems, and related services covering a range of technologies, including especially mobile networks. Directly and through subsidiaries, it also has a major role in mobile devices and cable TV and IPTV systems.

AFP has contributed to the report.