Ericsson (ERIC) said that 2022 profitability target for the group remains unchanged with an operating margin of 12% - 14%, excluding restructuring charges.
The company said it will outline revised strategic growth ambitions and new long-term financial targets at its Capital Markets Day 2020 on Tuesday.
The 2022 operating margin target for Networks is raised to 16% - 18% from the prior outlook of 15% - 17%. The increased target in segment Networks is mainly driven by foot-print gains in the market.
In segment Digital Services, due to the increase in R&D spend in combination with the decline in legacy sales the operating margin target is revised to 4% - 7% in 2022, compared to the prior outlook of 10% - 12%.
Beyond 2022, the long-term profitability target is an EBITA margin excluding restructuring charges of 15% - 18% for the Group. The company aims to achieve this through improvement activities across the Group.
The company will continue its focus on free cash flow, before M&A, with a target of 9% - 12% of sales.
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September 11, 2026 16:26 ET Consumer prices data was the main news on the economic front in the U.S. this week. In Europe, the latest interest rate decision from the European Central Bank was the focus along with the revised second quarter economic growth data for the euro area. In Asia, the monthly foreign trade data from China drew attention.