Ericsson Q1 Adj. Operating Income Rises; Adj. Sales Down 2% - Quick Facts

Ericsson (ERIC) reported first quarter net income of 2.3 billion Swedish kronor compared to 2.4 billion kronor, prior year. Net income to owners of the parent company declined to 2.2 billion kronor from 2.3 billion kronor. Earnings per share was 0.65 kronor compared to 0.70 kronor. The company noted that the decline in results was due to items affecting comparability in first quarter of prior year which had a positive impact. Non-IFRS earnings per share was 0.79 kronor compared to 0.80 kronor.

First quarter operating income declined to 4.3 billion kronor from 4.9 billion kronor. Operating income excluding restructuring charges and items increased to 4.6 billion kronor from 3.5 billion kronor. The company noted that the Covid-19 pandemic had limited impact on operating income and cash flow in the quarter. Gross margin excluding restructuring charges improved to 40.4% from 38.5%.

First-quarter sales were 49.8 billion Swedish kronor compared to 48.9 billion kronor, previous year. Sales were down 2% adjusted for comparable units and currency.

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