Ericsson in the red for the seventh quarter in a row

Swedish equipment manufacturer Ericsson [ERICa.ST] has announced its financial results for the three months to the end of December 2002. Net loss for the quarter was SEK8.3 billion (USD913 million), down from SEK3.5 billion for the equivalent period in 2001, making this the seventh successive quarter in which the company has registered a loss. Total sales stood at SEK36.7 billion (USD4 billion), down 37%. The most worrying thing for Ericsson is that the figures are showing no signs of improvement. Sales for the full year 2002 were down 31% at SEK145.8 billion (USD15 billion) indicating that the vendor’s performance in the latest quarter was worse than the annual average. Net loss for the year has shown some improvement, however, from SEK21.3 billion in 2001 to SEK19 billion (USD1.8 billion). As part of its cost cutting measures in the face of the telecoms downturn, Ericsson has made swingeing cuts to its workforce in recent years. At the end of 2002 the company employed just 64,621 people, down from 105,000 at the end of 2000, a 39% fall over two years.