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A provider of telecommunications equipment and related services to operators of mobile and fixed networks worldwide.
10/16/07:Switching to underperform after abysmal 3Q earnings report showing symptomatic problems with ERIC which are not likely to correct themselves until some internal reorganization takes place.From Reuters:"STOCKHOLM (Reuters) - Shares in telecoms equipment maker Ericsson (ERICb.ST) plunged more than 29 percent on Tuesday, their biggest intraday fall on record, after the firm said third-quarter earnings were well short of expectations.Ericsson, the world's biggest mobile network maker, said in a preliminary report its operating earnings dropped 36 percent to 5.6 billion Swedish crowns ($876 million) from a year-ago 8.8 billion, on disappointing sales of upgrades and expansions.A Reuters survey of 33 analysts had forecast 8.9 billion crowns in operating earnings. The news landed hard on shares in rivals such as Nokia (NOK1V.HE) and Alcatel-Lucent (ALUA.PA) and dragged the entire Swedish stock market down nearly 4 percent."I think it's a major disaster and unfortunately it's more than a Q3 issue," said Thomas Langer, analyst at West LB, which cut Ericsson to "reduce" from "buy".He said the warning pointed to deeper trouble at Ericsson than just the past few months."My interpretation is that mix of sales in the market is likely to prevail in 2008 -- this is the big, bad news."
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