* Sales SEK 49.6 (44.2) b, up 5% for comparable units in constant
currencies
* Operating income 1) before joint ventures SEK 4.7 (3.4) b
* Operating margin 1) before joint ventures 9.5% (7.6%)
* Share in earnings from joint ventures SEK -2.2 (0.9) b
* Income after financial items 1) SEK 3.3 (4.5) b
* Restructuring charges SEK 0.7 (0.8) b, excluding joint ventures
* Net income SEK 1.8 (2.6) b
* Earnings per share SEK 0.54 (0.83)
* Cash flow 2) 3) SEK -1.7 (2.8) b, including SEK 1.5 b pension
trusts payment
1) Excluding restructuring charges.
2) Excluding cash outlays for restructuring of SEK 1.2 (0.3) b
3) Excluding dividend from Sony Ericsson of SEK 0.0 (2.2) b
CEO COMMENTS"We have started the year with good growth ahead of the market and a
positive margin trend but with a weaker cash flow," said Carl-Henric
Svanberg, President and CEO of Ericsson (NASDAQ:ERIC). "Sales of
network infrastructure are stable and the demand for professional
services is growing. We have won several strategic contracts during
the quarter, including 3G for China Unicom, 4G for Verizon Wireless
and managed services for Vodafone UK.
The effects of the global economic recession on the global mobile
network market are so far limited. We have seen operators, in a few
markets where local currencies have depreciated dramatically,
postpone investments. Some operators are also more cautious with
longer-term investments in fixed networks, such as rollout of fiber
networks. Most operators, however, have healthy financial positions,
there is a strong traffic growth and the networks are fairly loaded.
It remains difficult to more precisely predict how operators will act
in the current environment. However, investments in wireless networks
largely continues, and rollouts of new networks and new technologies
accelerate in markets such as the US, China and India. Telecom plays
a critical role for growth and development of societies, and fixed
and mobile broadband rollouts are now on political agendas in most
countries.
Our cost reduction activities are running according to plan,
targeting annual savings of SEK 10 b. from the second half of 2010.
With our business mix, worldwide presence and early decision to cut
costs, we are well positioned to strengthen our leadership in the
present turbulent economic environment.
Our joint ventures, Sony Ericsson and ST-Ericsson, are affected by
the economic downturn and the dramatic decline in consumer demand for
handsets. Extensive programs to reduce costs are ongoing to adjust
to the current market environment and restore profitability,"
concluded Carl-Henric Svanberg.
FINANCIAL HIGHLIGHTS
Income statement and cash flow
First quarter Fourth quarter
SEK b. 2009 2008 Change 2008 1) Change
Net sales 49.6 44.2 12% 67.0 -26%
Net sales for
comparable units 49.6 42.7 16% 65.9 -25%
Gross margin 36.3% 38.6% - 35.2% -
EBITDA margin
before JVs 12.9% 12.7% - 17.7% -
Operating income
before JVs 4.7 3.4 40% 9.8 -52%
Operating margin
before JVs 9.5% 7.6% - 14.6% -
Income after
financial items 3.3 4.5 -25% 9.5 -65%
Net income 1.8 2.6 -30% 4.1 -44%
EPS diluted, SEK 0.54 0.83 -35% 1.21 -55%
Adjusted cash flow 2) -1.7 2.8 - 8.0 -
Cash flow from operations -2.9 4.7 - 7.0 -
All numbers, excl. EPS and Net income, adjusted for restructuring
charges
1) Fourth quarter 2008 includes a capital gain of SEK 0.8 b. from
divestment of shares in Symbian
2) Excluding cash outlays for restructuring of SEK 1.2 (0.3) b. and
dividend from Sony Ericsson of SEK 0.0 (2.2) b.
Sales in the quarter increased 12% year-over-year and 16% for
comparable units, i.e. excluding Ericsson Mobile Platforms and PBX
operations. Excluding currency exchange rate effects, growth amounted
to 5% for comparable units.
In the quarter, gross margin, excluding restructuring charges, was
36.3% (38.6%). The year-over-year decline is mainly due to large
initial rollouts of 3G in China, higher sales in India, higher
proportion of services sales and the transfer of Ericsson Mobile
Platforms. Gross margin improved sequentially due to the business mix
and effects of the ongoing cost reduction program.
Operating expenses amounted to SEK 13.6 (14.1) b. in the quarter,
excluding restructuring charges. The year-over-year decrease, despite
unfavorable currency effects, is primarily a result of ongoing cost
reduction activities. Operating expenses as a percentage of sales
declined to 27% (32%).
Operating income, excluding joint ventures and restructuring charges,
increased by 40% and amounted to SEK 4.7 (3.4) b. in the quarter.
Operating margin, excluding joint ventures and restructuring charges,
increased to 9.5% (7.6%). Networks, Professional Services and
Multimedia showed a positive margin development during the quarter. A
weaker SEK affected income positively but hedges partly limited the
positive effect.
Ericsson's share in earnings from joint ventures amounted to SEK -2.2
(0.9) b.
Financial net was SEK 0.8 (0.2) b. in the quarter, mainly resulting
from positive revaluation of financial investments and lower
financial cost due to the decline in interest rates.
Net income amounted to SEK 1.8 (2.6) b. in the quarter and was
negatively impacted by the significant drop in the share in earnings
from Sony Ericsson.
Adjusted cash flow amounted to SEK -1.7 (2.8) b. excluding cash
outlays for restructuring of SEK 1.2 (0.3) b. and dividend from Sony
Ericsson of SEK 0.0 (2.2) b. Cash flow in the quarter was negatively
affected by seasonality and capitalization of pension trusts of SEK
1.5 b. Current liabilities decreased due to high VAT payments and
cash out from provisions.
Trade receivables decreased sequentially due to lower sales. However,
days sales outstanding (DSO) increased to 124 (110), due to increased
business activity,and high invoicing in the later part of the
quarter. There are also some effects from operators optimizing their
cash situation in the tougher credit environment.
Balance sheet and other performance indicators
Mar 31, Dec 31,
SEK b. 2009 2008
Net cash 22.9 34.7
Interest-bearing liabilities and
post-employment benefits 41.2 40.4
Trade receivables 75.2 75.9
Days sales outstanding 124 106
Inventory 30.7 27.8
Of which market
unit work in progress 18.9 16.5
Inventory days 83 68
Payable days 65 55
Customer financing, net 2.8 2.8
Return on capital employed 7% 11%
Equity ratio 52% 50%
The net cash position decreased sequentially to SEK 22.9 (34.7) b.
mainly due to a payment of USD 1.1 b. (SEK 8.4 b.) to establish the
50/50 joint venture ST-Ericsson with STMicroelectronics. Cash, cash
equivalents and short-term investments amounted to SEK 64.1 (75.0) b.
Of a total debt of SEK 32.2 b., SEK 7.2 b. matures in the next twelve
months.
Customer financing remains low at a level of SEK 2.8 (2.8) b.
During the quarter, approximately SEK 3.1 b. of provisions related to
warranty and project commitments and other items were utilized, of
which SEK 1.2 b. were related to restructuring. Additions of SEK 1.7
b. were made, of which SEK 0.6 b. related to restructuring. Reversals
of SEK 0.3 b. were made.
Cost reductions
The cost reduction program launched in January 2008 was concluded by
year-end, with charges of SEK 6.7 b. In January 2009, further cost
reductions were announced. The program targets annual savings of SEK
10 b. from second half of 2010, with an equal split between cost of
sales and operating expenses. Restructuring charges are estimated to
SEK 6-7 b. Restructuring charges related to activities launched in
the first quarter amounted to SEK 0.7 b. At the end of the quarter
cash outlays of SEK 3.3 b. remains.
As previously announced, we are leveraging synergies between our
different technologies, in-house and acquired, and taking advantage
of opportunities in the transformation to all-IP broadband networks.
We are reducing the number of software platforms and increasing the
re-use of hardware.
First quarter Full year
Restructuring charges, SEK b. 2009 2008
Cost of sales -0.4 -2.5
Research and development expenses -0.3 -2.7
Selling and administrative expenses - -1.5
Total -0.7 -6.7
SEGMENT RESULTS
First quarter Fourth quarter
SEK b. 2009 2008 Change 2008 Change
Networks sales 33.5 30.0 12% 45.8 -27%
Of which network rollout 4.7 4.5 4% 7.6 -38%
EBITDA margin 14% 15% - 17% -
Operating margin 10% 9% - 14% -
Professional Services sales 12.8 10.0 28% 16.2 -21%
Of which managed services 4.2 3.1 34% 4.3 -2%
EBITDA margin 17% 16% - 19% -
Operating margin 15% 14% - 18% -
Multimedia sales 2) 3.2 2.6 25% 3.9 -17%
EBITDA margin 2) 10% 1% - 25% 1) -
Operating margin 2) 2% -9% - 18% 1) -
Sales from divested and
transferred businesses - 1.6 - 1.1 -
Total sales 49.6 44.2 12% 67.0 -26%
All numbers exclude restructuring charges
1) Fourth quarter 2008 includes a capital gain of SEK 0.8 b. from
divestment of shares in Symbian
2) 2008 and 2009 numbers for Multimedia exclude Ericsson Mobile
Platforms and PBX operations.
Networks
Networks sales increased by 12% year-over-year, positively impacted
by a weaker SEK. Sales, excluding network rollout, were up with
especially strong performance in China, India and the US. Sales of
network rollout services decreased 38% sequentially, reflecting a
lower proportion of turnkey projects. The increase in operating
margin was a result of the weaker SEK, business mix and lower costs,
despite a negative impact from the ongoing large rollouts in China
and India.
Ericsson's technology leadership was confirmed through key contract
wins. China Unicom is presently carrying out the world's largest and
fastest 3G rollout and Ericsson plays a key role in this. The 3G
rollout for BSNL in India has started. The 4G/LTE contract with
Verizon Wireless is of major strategic importance.
The growing traffic in the world's broadband networks increases the
demand for transmission and packet network upgrades, and sales of
Ericsson's SmartEdge routers and MiniLink showed strong growth.
Professional Services
Professional Services sales increased by 28% year-over-year. Growth
in constant currencies amounted to 10%. Managed services continued to
grow substantially and were up 34% year-over-year. The growing
interest for managed services is driven by operators' increased focus
on cost, especially in the current market environment. Operating
margin in the quarter reached 15% (14%) due to continued efficiency
gains.
During the quarter, five new managed services contracts were signed,
including key contracts with T-Mobile and Hutch for their shared
network in UK and with Vodafone UK.
The total number of subscribers in managed operations is now 275
million, of which 60% are in high-growth markets.
Multimedia
Multimedia sales increased by 25% year-over-year for comparable
units, i.e. excluding divestment of the PBX operations and Ericsson
Mobile Platforms. Revenue Management and IPX (multimedia brokering)
continued to show good growth. Some cable and satellite operators are
postponing TV investments. Operating margin in the quarter for
comparable units was 2% (-9%).
Sony Ericsson
First quarter Fourth quarter
EUR m. 2009 2008 Change 2008 Change
Number of units shipped (m.) 14.5 22.3 -35% 24.2 -40%
Average selling price (EUR) 120 121 -1% 121 -1%
Net sales 1,736 2,702 -36% 2,914 -40%
Gross margin 8% 29% - 15% -
Operating margin -21% 7% - -9% -
Income before taxes -370 193 - -261 -
Income before taxes,
excl restructuring charges -358 193 - -133 -
Net income -293 133 - -187 -
Units shipped in the quarter were 14.5 million, a decrease of 35%
year-over-year. Sales in the quarter were EUR 1,736 million, a
decrease of 36% year-over-year. Sales decreased primarily as a
result of continued weak consumer confidence and de-stocking in the
retail and distribution channels. Gross margin declined both
year-on-year and sequentially, reflecting a change in the product
mix, material write-offs, and exchange rate volatility.
Income before taxes for the quarter, excluding restructuring charges,
was a loss of EUR 358 million. The company has extensive operating
expenses cost reduction programs of EUR 880 million and cost of sales
reduction programs in place with the ambition to restore
profitability. As of March 31, 2009, Sony Ericsson retained a strong
net cash position of EUR 1.1 billion.
Ericsson's share in Sony Ericsson's income before tax was SEK -2.1
(0.9) b. in the quarter.
ST-Ericsson
2009 2008
USD m Feb-Mar Proforma Q1 Proforma Q1
Net sales 391 562 862
Operating income before taxes -98 - -
Net income -89 - -
ST-Ericsson was formed on February 2, 2009. By merging
STMicroelectronics' wireless business and Ericsson Mobile Platforms,
a world leader is created in this industry. The company has leading
solutions in 2G, 3G and TD-SCDMA as well as LTE. ST-Ericsson is a
major supplier to Nokia, Samsung, Sony Ericsson, LG and others.
ST-Ericsson's sales were significantly affected by the slowdown in
the handset market and ongoing de-stocking among operators. A cost
adjustment program of USD 250 m. was launched in the fourth quarter
2008, and is under execution. An additional cost reduction program of
USD 230 m. has been launched to adapt to current market conditions.
ST-Ericsson is reported in US-GAAP. Ericsson's share of ST-Ericsson's
earnings before tax was SEK -0.4 b. Ericsson's share of ST-Ericsson's
earnings before tax, adjusted to IFRS, was SEK -0.2 b. The
adjustments mainly relates to capitalization of hardware R&D.
Ericsson Mobile Platforms incurred a loss of SEK -0.5 b. for January,
which is added to the result in segment ST-Ericsson. The total loss
in the segment is therefore SEK -0.7 b.
REGIONAL OVERVIEW
First quarter Fourth quarter
Sales, SEK b. 2009 2008 Change 2008 Change
Western Europe 11.2 11.7 -4% 16.1 -31%
Central and Eastern Europe,
Middle East and Africa 12.5 11.1 12% 17.6 -29%
Asia Pacific 16.3 12.9 26% 20.5 -21%
Latin America 4.4 4.2 5% 7.9 -44%
North America 5.2 4.3 21% 4.9 6%
Total 49.6 44.2 12% 67.0 -26%
Western Europe is the region that was affected the most by the
divestiture of Ericsson Mobile Platforms and PBX operations. For
comparable units the region was up 5% year-over-year. UK and Germany
showed positive development driven by good growth in managed
services. This was further emphasized by new managed services
contracts in UK. Italy showed increasing growth while sales in Spain
continue to be weak.
In Central and Eastern Europe, Middle East and Africa, sales
increased by 12% year-over-year but with significant variations
between countries. Turkey and sub-Sahara showed strong performance,
driven by 2G and 3G buildouts, while operators in markets where the
financial crisis has hit particularly hard, such as Russia and
Ukraine, are postponing investments. Together with operator partners,
Ericsson has built coverage in the UN Millennium Villages. This has
created a rapid increase in usage of telecom services with positive
impacts on people's lives and economic growth.
Asia Pacific sales increased by 26% year-over-year. The mobile
broadband rollout in China is the largest ever in the world and is
being done in record time. Deliveries are high also to India,
Indonesia and Vietnam. The development is strong also in Japan, where
operators are building mobile broadband networks and the consumer
demand for subscriptions bundled with laptops has quickly created a
new market. Operators in Bangladesh and Pakistan are slowing
investments due to difficult local business environment.
Latin American sales increased by 5% year-over-year with continued
expansions of 2G networks as well as rollout of mobile broadband.
Brazil and Mexico showed good development while some countries in the
region were slower. In addition, there is a growing demand for
managed services across the region.
North American sales increased by 21% year-over-year. The rollout of
mobile broadband continues and the underlying growth is good. The
contract with Verizon Wireless for a nationwide 4G/LTE network was
especially encouraging as Verizon Wireless is a new customer to
Ericsson. Revenue from this contract will mainly affect 2010. There
is an emerging interest for managed services also in this region.
MARKET DEVELOPMENT
Growth rates are based on Ericsson and market estimates.
The global economic slowdown is affecting all parts of the society.
However, we believe that the fundamentals for longer-term positive
development for our industry remain solid. The need for
telecommunication continues to grow and plays a vital role for the
development of a sustainable and prosperous society. Ericsson is well
positioned to drive and benefit from this development.
Mobile subscriptions grew by some 181 million in the quarter to a
total of 4.16 billion. The number of new WCDMA subscriptions is
accelerating and grew by 27 million in the quarter to a total of 319
million. In the twelve-month period ending December 31, 2008, fixed
broadband connections grew by 18% year-over-year to close to 400
million, adding nearly 60 million subscribers.
The continued subscription growth creates need for new and expanded
mobile networks and corresponding professional services. Although GSM
continues to represent a large part of the mobile systems market, the
growth of 3G/WCDMA is quickly accelerating. The strong development in
emerging markets continues, and although they represent less than one
third of global GDP they represent significantly more of the market
for mobile network equipment.
Broadband Internet revenues for fixed operators are expected to grow
from 20% to more than 30% of total revenues in the next five years.
Mobile operators' data revenues, currently at some 20% of total
revenues, are expected to grow even faster. In addition to capacity
enhancements, operators face the challenge of converting to all-IP
broadband networks. This will include increased deployments of
broadband access, routing and transmission along with next-generation
service delivery and revenue management systems.
There is continued strong growth in services, fueled by operators'
desire to reduce operating expenses and improve efficiency in network
operation and maintenance. The move toward all-IP and increased
network complexity will create further demand for systems integration
and consulting.
PARENT COMPANY INFORMATION
Net sales for the first quarter amounted to SEK 0.2 (2.0) b. and
income after financial items was SEK 1.4 (4.4) b. Effective January
1, 2009, license revenues from third parties related to patent
licenses will be handled by Ericsson AB, a wholly owned subsidiary.
Contracts, earlier reported to Parent Company, are being transferred
to Ericsson AB for operational reasons. As a consequence, the Parent
Company net sales 2009 will be significantly reduced. The income is
also impacted by the reduced dividend from Sony Ericsson of SEK 0.0
(2.2) b.
Major changes in the Parent Company's financial position for the
first quarter include investments in the joint venture with
STMicroelectronics of SEK 8.4 b., decreased other current receivables
of SEK 3.6 b. and decreased cash and bank and short-term investments
of SEK 6.5 b. Current and non-current liabilities to subsidiaries
decreased by SEK 4.0 b. At the end of the quarter, cash, bank and
short-term investments amounted to SEK 52.7 (59.2) b.
In accordance with the conditions of the Stock Purchase Plans and
Stock Option Plans for Ericsson employees, 2,107,770 shares from
treasury stock were sold or distributed to employees during the first
quarter. The holding of treasury stock at March 31, 2009, was
58,958,327 Class B shares.
OTHER INFORMATION
New joint venture ST-Ericsson
On February 3, 2009, STMicroelectronics and Ericsson announced the
closing of their agreement merging Ericsson Mobile Platforms and
STMicroelectronics' wireless business into a 50/50 joint venture. The
deal was completed on the terms originally announced on August 20,
2008. Ericsson contributed USD 1.1 b. (SEK 8.4 b.) net, of which USD
0.7 b. was paid to STMicroelectronics.
Divestment of TEMS branded products business to Ascom
On March 23, 2009, Ericsson announced an agreement to divest its TEMS
branded products business, consisting of tools for air interface
monitoring and radio network planning, to Ascom. The purchase price
is CHF 190 million, excluding net of assets and liabilities. The
agreement involves transfer of approximately 300 employees. The
transaction is expected to close in June 2009.
Annual General Meeting
The Annual General Meeting (AGM) decided, as previously announced and
in accordance with the proposal by the Board of Directors, on a
dividend payment of SEK 1.85 per share for 2008 and with April 27,
2009, as the date of record for dividend. The total dividend payment
amounts to SEK 6.0 (8.0) b.
In accordance with the Board of Directors' proposals, the AGM
resolved the completion of LTV 2008 (Long Term Variable
compensation). The AGM also resolved the implementation of LTV 2009,
including directed issue of shares, directed acquisition offer and
transfer of shares. In addition, the AGM resolved the transfer of
treasury stock for previously decided LTV programs. For more details,
see www.ericsson.com/investors.
Assessment of risk environment
Ericsson's operational and financial risk factors and exposures are
described under "Risk factors" in our Annual Report 2008.
Risk factors and exposures in focus for the Parent Company and the
Ericsson Group for the forthcoming six-month period include:
* potential negative effects due to the present serious turmoil in
the financial markets and the weak economic business environment on
operators' willingness to invest in network development as well as
the financial liabilities of sub suppliers, for example due to lack
of borrowing facilities or reduced consumer telecom spending, or
increased pressure on us to provide financing;
* unfavorable product mix in the Networks segment, with reduced sales
of software, upgrades and extensions and an increased proportion of
new network build-outs and break-in contracts, which may result in
lower gross margins and/or working capital build-up, which in turn
puts pressure on our cash conversion rate;
* a volatile sales pattern in the Multimedia segment or variability
in our overall sales seasonality could make it more difficult to
forecast future sales;
* effects of the ongoing industry consolidation among the company's
customers as well as between our largest competitors, e.g.
intensified price competition;
* changes in foreign exchange rates, in particular USD and EUR;
* continued political unrest or instability in certain markets.
Ericsson conducts business in certain countries which are subject to
trade restrictions or which are focused on by certain investors. We
stringently follow all relevant regulations and trade embargos
applicable to us in our dealings with customers operating in such
countries. Moreover, Ericsson operates globally in accordance with
Group level policies and directives for business ethics and conduct.
In no way should our business activities in these countries be
construed as supporting a particular political agenda or regime. We
have activities in such countries mainly due to that certain
customers with multi-country operations put demands on us to support
them in all of their markets.
Please refer further to Ericsson's Annual Report 2008, where we
describe our risks and uncertainties along with our strategies and
tactics to mitigate the risk exposures or limit unfavorable outcomes.
Stockholm, April 30, 2009
Carl-Henric Svanberg
President and CEO
Telefonaktiebolaget LM Ericsson (publ)
Date for next report: July 24, 2009
AUDITORS' REVIEW REPORT
We have reviewed this report for the period January 1 to March 31,
2009, for Telefonaktiebolaget LM Ericsson (publ). The board of
directors and the CEO are responsible for the preparation and
presentation of this financial information in accordance with IAS 34
and the Annual Accounts Act. Our responsibility is to express a
conclusion on this financial information based on our review.
We conducted our review in accordance with the Standard on Review
Engagements SÖG 2410, Review of Financial Information Performed by
the Independent Auditor of the Entity, issued by FAR SRS. A review
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with Standards on Auditing in Sweden,
RS, and other generally accepted auditing practices. The procedures
performed in a review do not enable us to obtain a level of assurance
that would make us aware of all significant matters that might be
identified in an audit. Therefore, the conclusion expressed based on
a review does not give the same level of assurance as a conclusion
expressed based on an audit.
Based on our review, nothing has come to our attention that causes us
to believe that the interim report is not prepared, in all material
respects, in accordance with IAS 34 and the Swedish Annual Accounts
Act, regarding the Group, and with the Swedish Annual Accounts Act,
regarding the Parent Company..
Stockholm, April 30, 2009
PricewaterhouseCoopers
AB
Peter
Clemedtson
Authorized Public
Accountant
EDITOR'S NOTE
To read the complete report with tables, please go to:
www.ericsson.com/investors/financial_reports/2009/3month09-en.pdf
Ericsson invites media, investors and analysts to a press conference
at the Ericsson headquarters, Torshamnsgatan 23, Stockholm, at 09.00
(CET), April 30.
An analysts, investors and media conference call will begin at 14.00
(CET).
Live webcasts of the press conference and conference call as well as
supporting slides will be available at www.ericsson.com/press and
www.ericsson.com/investors.
Video material will be made available during the day on
www.ericsson.com/broadcast_room
FOR FURTHER INFORMATION, PLEASE CONTACT
Henry Sténson, Senior Vice President, Communications
Phone: +46 10 719 4044
E-mail: investor.relations@ericsson.com or
press.relations@ericsson.com
Investors
Gary Pinkham, Vice President,
Investor Relations
Phone: +46 10 719 0000
E-mail: investor.relations@ericsson.com
Susanne Andersson,
Investor RelationsPhone: +46 10 719 4631
E-mail: investor.relations@ericsson.com
Andreas Hedemyr,
Investor Relations
Phone: +46 10 714 3748
E-mail: investor.relations@ericsson.com
Media
Åse Lindskog, Vice President,
Head of Media Relations
Phone: +46 10 719 9725, +46 730 244 872
E-mail: press.relations@ericsson.com
Ola Rembe, Vice President,
Phone: +46 10 719 9727, +46 730 244 873
E-mail: press.relations@ericsson.com
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000
www.ericsson.com
Disclosure Pursuant to the Swedish Securities Markets Act
Ericsson discloses the information provided herein pursuant to the
Securities Markets Act. The information was submitted for publication
at 07.30 CET, on April 30, 2009.
Safe Harbor Statement of Ericsson under the US Private Securities
Litigation Reform Act of 1995;
All statements made or incorporated by reference in this release,
other than statements or characterizations of historical facts, are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates and projections about
our industry, management's beliefs and certain assumptions made by
us. Forward-looking statements can often be identified by words such
as "anticipates", "expects", "intends", "plans", "predicts","believes", "seeks", "estimates", "may", "will", "should", "would","potential", "continue", and variations or negatives of these words,
and include, among others, statements regarding: (i) strategies,
outlook and growth prospects; (ii) positioning to deliver future
plans and to realize potential for future growth; (iii) liquidity and
capital resources and expenditure, and our credit ratings; (iv)
growth in demand for our products and services; (v) our joint venture
activities; (vi) economic outlook and industry trends; (vii)
developments of our markets; (viii) the impact of regulatory
initiatives; (ix) research and development expenditures; (x) the
strength of our competitors; (xi) future cost savings; (xii) plans to
launch new products and services; (xiii) assessments of risks; (xiv)
integration of acquired businesses; (xv) compliance with rules and
regulations and (xvi) infringements of intellectual property rights
of others.
In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements.
These forward-looking statements speak only as of the date hereof and
are based upon the information available to us at this time. Such
information is subject to change, and we will not necessarily inform
you of such changes. These statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions
that are difficult to predict. Therefore, our actual results could
differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors. Important
factors that may cause such a difference for Ericsson include, but
are not limited to: (i) material adverse changes in the markets in
which we operate or in global economic conditions; (ii) increased
product and price competition; (iii) reductions in capital
expenditure by network operators; (iv) the cost of technological
innovation and increased expenditure to improve quality of service;
(v) significant changes in market share for our principal products
and services; (vi) foreign exchange rate or interest rate
fluctuations; and (vii) the successful implementation of our business
and operational initiatives.
