Possible fine generates losses to Ericsson
The telecommunications company did not received 203 million euros in the nine months that have elapsed from this 2019
The Swedish telecommunications company Ericsson recorded losses of 203 million euros in the first nine months of 2019, a figure that contrasts with the attributable net profit of 2 million euros accounted for in the same period of 2018, as a result of the impact of the provision of 1,061 million euros to cover the impact of a possible fine in the United States.
Last September, Ericsson had announced that it would provision 1,107 million euros in its third quarter accounts to face a possible fine in the United States, where the Swedish company is being investigated by the Securities and Exchange Commission (SEC) and the Department of Justice for a possible violation of the Foreign Corrupt Practices Act.
The Scandinavian company said that finally the amount of the provision accounted for has been lower than announced as a result of the evolution of the currency exchange rate.
On the other hand, Ericsson reported that its net sales between January and September reached 14,826 million euros, 9.4% above the turnover recorded in the first nine months of 2018.
Revenues from the technology multinational grew 14% in the network business, up to 10,197 million euros, while in the area of digital services they increased 6.4%, to 2,462 million euros.
Ericsson’s operating result totaled 406 million euros between January and September, up 42%, while the company’s operating margin rose to 2.8% from 2.1%.
K. Tovar
Source: Investing
