(Teleborsa) – Ericsson, a Swedish multinational active in the supply of communication technologies and services, software and infrastructures in the ICT sector, recorded better-than-expected results in terms of core earnings for the third quarter of 2021, even if revenues were below forecasts. The organic sales of the group decreased by 1% year-on-year to SEK 56.3 billion (approximately € 5.62 million), compared to the 58.1 billion expected by analysts. The continued decline in sales of digital networks and services in China weighs heavily on the growth rate of -6%.
The gross margin excluding restructuring charges, it improved to 44% (43.2%) mainly thanks to the increase in revenues from the IPR division and the acquisition of Cradlepoint. The operating profits adjusted were up to SEK 8.8 billion (about € 870 million), compared to last year’s 8.6 billion and consensus 7.85 billion. L’Net income (unadjusted) was SEK 5.8 billion (approximately EUR 580 million).
The company’s growth is driven by the “competitive 5G wallet“, Says CEO Borje Ekholm, who points out that” the 5G contracts now awarded by all three US Tier 1 carriers are the largest in Ericsson’s history. “
“At the end of the third quarter we saw a certain impact on sales due to disturbances in the supply chain and such problems will continue to pose a risk – he added – Although we have continued to gain share in a growing market, the expected reduction in sales in China, lower variable sales in Managed Services and some supply chain disturbances have led to a negative development of organic sales “.