Ericsson reported a net loss for the fourth quarter, hurt by charges for its planned exit of the ST-Ericsson venture, while sales at the network equipment maker improved. Revenues were up 5 percent from a year earlier and 23 percent higher versus the third quarter at SEK 66.9 billion, helped by a seasonal increase in year-end activity.
Operating profit excluding joint ventures rose 17 percent year-on-year to SEK 4.8 billion, as cost reductions helped the margin improve to 7.1 percent from 6.4. The net result was a loss of SEK 6.3 billion, which includes SEK 8.0 billion in charges for ST-Ericsson and SEK 0.5 billion for a reduction in deferred tax assets due to the cut in tax rates in Sweden.
Ericsson improved operating cash flow to SEK 15.7 billion in the quarter, versus SEK 5.5 billion a year ago, and finished the year with total cash of SEK 38.5 billion. The company raised its dividend for 2012 to SEK 2.75 per share from SEK 2.50 a year ago.
Ericsson said the North America remained strong in the quarter, while the overall business mix was weighted still more towards coverage rather than capacity projects. The company expects this to gradually shift towards more capacity projects during the second half of 2013, based on customer demand and the economic outlook.
