The market mix is affected by the USA coming back. We see it clearly, says Börje Ekholm to TT.
He says that the target for the profit margin of 15-18 percent remains, despite only reaching around 9 percent in the third quarter.
The target remains, at 15-18 percent. We will reach it as soon as possible, he says.
Move from Kista "far-fetched"
He describes the recent speculations about Ericsson considering moving its headquarters from Kista in Stockholm as "far-fetched".
We always review where it is right to have our operations. It is in Sweden and it is abroad as well. Where should we be and where should we be to attract the right talents for the future, he says.
He notes at the same time that Sweden has been the base for the operations for a long time.
We have fantastic research and development in Sweden. It is completely central to our global competitiveness, so to see an Ericsson that is not sitting here is like "far-fetched", he says.
In the report, Ekholm says that Ericsson sees signs that the overall market is stabilizing and that North America has been a forerunner in returning to growth.
"Even though the market development ultimately lies in the customers' hands, we work to deliver continuous improvements regardless of market conditions", comments CEO Börje Ekholm in a press release.
Better than expected
Ericsson's operating result, adjusted for comparative items, was SEK 7.8 billion for the third quarter, compared to SEK 4.7 billion for the corresponding quarter last year.
"Our results for the third quarter show our progress, with strongly increased gross margins and free cash flow, positively affected by our commercial discipline and our measures for operational efficiency", writes Börje Ekholm.
Sales of SEK 61.8 billion were a few billion lower than the third quarter last year, but in line with expectations. The profit, adjusted for comparative items, was better than expected according to Bloomberg's compilation of forecasts.
Before Tuesday, Ericsson's share had risen by 24 percent since the turn of the year, more than double the increase of the rest of the stock market.
Ericsson reports an operating result of SEK 5.8 billion for the third quarter. This can be compared to the loss of SEK 28.9 billion for the corresponding quarter last year.
Last year's large loss in the third quarter is explained by a write-down of the value of the acquired cloud service company Vonage of SEK 31.9 billion, which was made then.
Excluding restructuring costs and write-downs of goodwill, Ericsson's operating result (ebita) was SEK 7.8 billion for the third quarter, compared to SEK 4.7 billion for the corresponding quarter last year.
Net sales for the third quarter were SEK 61.8 billion, which can be compared to SEK 64.5 billion for the same period last year.
