Ericsson Profit Plunges as Equipment Maker’s Troubles Intensify
- Shares drop most in nine years as carriers cut back spending
- CEO Frykhammar: ‘Absolutely not the beginning of the end’
Ericsson Shares Drop Most in 9 Years, What's Next?
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Ericsson AB blindsided investors with a surprise announcement that its business was deteriorating faster than expected, with no turnaround in sight.
Shares of the Swedish phone-network manufacturer sank the most in nine years -- wiping out about $3.8 billion in market value -- after Ericsson reported sales and earnings that significantly missed its predictions. The weakness accelerated toward the end of the third quarter and won’t end any time soon as carrier customers around the world cut back on investments, Ericsson said in an unscheduled statement Wednesday.