The Swedish producer of equipment for mobile networks Ericsson announced that it had completed the first quarter of 2018 with a considerably smaller loss, thanks to reduced expenses and preparations for a new generation of mobile networks.
From January till March, Ericsson had an operating loss of SEK 300 million (EUR 28.9 million), compared to SEK 11.3 billion in the corresponding period of 2017. The net loss amounted to SEK 700 million, as opposed to SEK 10 billion in the first quarter of 2017.
– Our efforts to improve efficiency in service delivery and common costs are starting to pay off – Chief Executive Borje Ekholm said in a statement.
The Swedish company cut more than 3,000 jobs in the first quarter. They are looking to reduce annual costs by at least SEK 10 billion by mid-2018. In March, Ekholm pointed out that they would achieve this goal within the set deadline.
Ericsson revenues in Europe and Latin America grew by 7%, with the majority of the growth achieved in Latin America, the company notes.
Ericsson expects the drop in sales in the Chinese market to continue in the upcoming period, but the company emphasizes that there has been an upwards trend in North America, its biggest market.
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