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Ericsson Slips To Loss In Q3; But Lifts 2020 Sales Outlook

Ericsson (ERIC) reported that its third-quarter net loss attributable to stockholders of the parent company was 6.23 billion Swedish kronor or 1.89 kronor per share compared to net income of 2.75 billion kronor or 0.83 kronor per share in the previous year.

Operating loss was 4.2 billion kronor, compared to operating income of 3.2 billion kronor last year, due to items affecting comparability. The decline was partly offset by higher sales, higher gross margin and lower operating expenses.

The company said last month that it made a 12 billion Swedish kronor or $1.23 billion provision related to resolving the U.S. investigations to cover an estimated monetary sanction of $1.0 billion, plus other related costs.

Ericsson today said quarterly net sales grew by 6% to 57.1 billion kronor from 53.8 billion kronor last year. Sales adjusted for comparable units and currency increased by 3% driven by strong growth in North America and North East Asia. Reported sales grew by 6%.

The company raised its 2020 sales outlook to a range of 230 billion kronor -240 billion kronor from the previous estimate of 210 billion kronor - 220 billion kronor, due to currency movements and a stronger 5G market.

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