This was the ERICY pr that got my attention, bb:
Ericsson Still Sees Profitability In 2003
Friday September 6, 8:17 am ET
STOCKHOLM -(Dow Jones)- Telefon AB LM Ericsson still expects to return to profitability sometime in 2003, Chairman Michael Treschow said Friday after the company announced the successful completion of its SEK30 billion share issue.
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Speaking at a press conference, Treschow said there had been no improvement in market conditions. Ericsson warned in July that it expected industry sales of equipment for mobile phone networks to fall by more than 15% this year. The Swedish company is the world's largest supplier of such equipment.
Ericsson said Friday that its issue of nearly eight billion new shares, priced at SEK3.80 apiece, had been substantially oversubscribed. It will use the new financing to strengthen its balance sheet and cover restructuring costs.
Treschow said it "exceeds his imagination" that Ericsson would need to return to shareholders for more money, as some analysts have suggested may be necessary. But he said that possibility could never be ruled out, particularly if investments by phone operators were to come to a complete halt.
He said Ericsson remains committed to its phone joint venture with Sony Corp.
Ericsson Chief Executive Kurt Hellstroem suggested last week that Ericsson might withdraw its support if the joint venture, Sony Ericsson Mobile Communications, didn't show progress in coming quarters.
Treschow said Friday that he could understand Hellstroem's "impatience" with the speed at which Sony Ericsson was introducing new products, but said Ericsson has set no time limit on its commitment to the joint venture.
Treschow said Ericsson had no plans to replace Chief Executive Kurt Hellstroem, whom some investors have said they'd like to see depart, if only to signal a fresh start for the company.
Hellstroem wasn't present at the press conference. A company spokesman said he was meeting with customers.
At 1157 GMT, shares of Ericsson were up 8.1% at SEK6.65 in Stockholm.
"Having no way as way -
Having no limitation as limitation"
"Using no way as way -
Having no limitation as limitation"
AI
