Ericsson reports big loss as it struggles against rivals

Ericsson reported financial results behind expectations this morning as it continues to struggle against more intense competition.

The telecoms equipment manufacturer reported a 6% fall in third-quarter revenue to SKr47.8bn while losses exceeded market forecasts, at SKr3.5bn.

Ericsson revealed SKr2.8bn in restructuring costs as it strives to make the business more competitive versus European and Asian rivals.

Börje Ekholm, president and chief executive officer of Ericsson described market conditions as “tough”, but said the networks business had seen slight sales growth year-on-year.

“While more remains to be done we are starting to see some encouraging improvements in our performance despite a continued challenging market,” said Ekholm.