Ericsson says it has retained market share

Net profit slipped 82% in the fourth quarter last year Ericsson said it kept its market share Ma Xiaofang Sun Jin Despite a sharp decline in net profits, Ericsson is pleased to say that it has retained market share in hand-to-hand combat with rivals such as Huawei.　　Yesterday, Ericsson released the fourth quarter of 2009 and 2009 Full-year results, Ericsson last year fourth quarter revenue fell 13%, to 58.33 billion Swedish krona, but the net profit decline is very serious, from the same period of 3.89 billion Swedish krona fell to 700 million Swedish krona, the decline reached 82%.　　Ericsson's new president, Hans Wiesberg, said that since the second half of 2009, as operators in the economic environment under the influence of spending cuts, the network business has been significantly affected, but throughout the year, the impact is not obvious. He also stressed: "We have in all areas of business to maintain market share, cash flow and financial situation is very good, the service business performance is outstanding, the joint venture company is also gradually turning over." "Huawei's share of the global telecoms market has risen rapidly in the past year, surpassing Nokia Siemens in the third quarter, and several large orders from the Nordic operators, which analysts say is due to lower prices and improved quality."　　However, Hans did not disclose the current share of Ericsson in the global equipment market.　　Ericsson also announced that it is expected to lay off 1500 people in the global market, which is Ericsson's second major layoff following the 5000 layoffs in 2009. At that time, Ericsson expected restructuring costs of 6 billion ~70 billion Swedish krona, restructuring is expected to be completed in the second quarter of 2010, the overall restructuring cost of 13 billion to 14 billion SEK, a total cost savings of 15 billion to 16 billion SEK.　　By the end of 2009, Ericsson had a total of 83,000 employees. The reason for Ericsson's sharp decline in profits in the fourth quarter of last year, in addition to the impact of revenue growth, has been a marked rise in restructuring costs. In the fourth quarter of last year, Ericsson's restructuring cost soared from the original 2.3 billion Swedish krona to SEK 4.3 billion. And Ericsson's joint ventures, including Chip company St-ericsson and Sony Ericsson, a mobile phone company, have lost revenue, making it less than SEK 1.46 billion.　　Both St-ericsson and Sony Ericsson have been credited with restructuring fees in their earnings. Sony Ericsson, in particular, sold 14.6 million handsets in the fourth quarter of last year, a turnaround from the third quarter, but there was a big gap compared with the same period in 2008. Handset sales fell sharply last year to 6.788 billion euros, down 40% from a year earlier and 836 million euros in losses.　　The company lost only 73 million euros in 2008.　　Ericsson's operating profit in the fourth quarter of last year was 7.5 billion SEK, but still lower than the 9 billion Swedish krona a year earlier, if the cost of restructuring and joint venture losses were excluded. Now that the global economy is warming,But the telecoms equipment market has not shown a clear pick-up.　　Ericsson's rival, Alcatel-Lucent, expects the telecoms market to be flat in 2010, preferably by 5%, while Nokia Siemens expects the market to grow without any growth. Ericsson did not give an estimate of the global market, but Ericsson said that in the current economic situation, the performance of the global market is different. Among them, operators in central and Middle East and Africa have become more cautious, but China, India and the US have grown markedly. At the same time, service income as a new growth point, under the economic crisis, more operators choose to outsource business to further reduce spending.