Activist Says Ericsson Must ‘Drain the Swamp of Losses’
- Quarterly adjusted operating profit missed analysts’ estimates
- Ericsson says it’s looking at cost cuts, price adjustments
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Activist investor, Cevian Capital AB, called Ericsson AB’s third-quarter results “disappointing” after the telecom network provider reported profit that missed analysts’ estimates. The stock dropped to its lowest level in more than two years.
“The earnings miss is driven by the divisions outside Networks, namely Cloud Software & Services and Enterprise,” said Christer Gardell, founder and managing partner of Cevian, which owns about 5% of Ericsson according to data compiled by Bloomberg. “Here, you must drain the swamp of losses.”