Ericsson Speeds Cost Cuts as Turnaround Proves Challenging
- Shares fall most in nine months as earnings miss estimates
- CFO Mellander asks for patience: ‘there is no quick fix’
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Ericsson AB cautioned that turning around the beleaguered phone-equipment maker will require even steeper cost cuts, testing the patience of investors who sent the stock tumbling the most this year.
Ericsson fell as much as 13 percent in Stockholm after the company posted a second-quarter loss and warned that a faltering market amid technology shifts could cause as much as 5 billion kronor ($600 million) of operating income to evaporate over the next 12 months.