SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
July 18, 2012
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 23, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-180880) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL.) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /S/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President and | ||
General Counsel | ||
By: | /S/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Communications |
Date: July 18, 2012
1 |
Ericsson Second Quarter Report 2012 | 2 |
Ericsson Second Quarter Report 2012 | 3 |
Ericsson Second Quarter Report 2012 | 4 |
Ericsson Second Quarter Report 2012 | 5 |
Ericsson Second Quarter Report 2012 | 6 |
Ericsson Second Quarter Report 2012 | 7 |
Ericsson Second Quarter Report 2012 | 8 |
Ericsson Second Quarter Report 2012 | 9 |
Ericsson Second Quarter Report 2012 | 10 |
Ericsson Second Quarter Report 2012 | 11 |
Ericsson Second Quarter Report 2012 | 12 |
Ericsson Second Quarter Report 2012 | 13 |
Ericsson Second Quarter Report 2012 | 14 |
Ericsson Second Quarter Report 2012 | 15 |
Apr - Jun | Jan - Jun | |||||||||||||||||||||||
SEK million |
2011 | 2012 | Change | 2011 | 2012 | Change | ||||||||||||||||||
Net sales |
54,770 | 55,319 | 1 | % | 107,736 | 106,293 | -1 | % | ||||||||||||||||
Cost of sales |
-34,064 | -37,611 | 10 | % | -66,642 | -71,596 | 7 | % | ||||||||||||||||
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Gross income |
20,706 | 17,708 | -14 | % | 41,094 | 34,697 | -16 | % | ||||||||||||||||
Gross margin (%) |
37.8 | % | 32.0 | % | 38.1 | % | 32.6 | % | ||||||||||||||||
Research and development expenses |
-8,108 | -8,097 | 0 | % | -16,099 | -16,113 | 0 | % | ||||||||||||||||
Selling and administrative expenses |
-7,741 | -6,855 | -11 | % | -14,182 | -13,087 | -8 | % | ||||||||||||||||
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Operating expenses |
-15,849 | -14,952 | -6 | % | -30,281 | -29,200 | -4 | % | ||||||||||||||||
Other operating income and expenses 1) |
166 | 530 | 509 | 8,279 | ||||||||||||||||||||
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Operating income before shares in earnings of JV and associated companies |
5,023 | 3,286 | -35 | % | 11,322 | 13,776 | 22 | % | ||||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
9.2 | % | 5.9 | % | 10.5 | % | 13.0 | % | ||||||||||||||||
Shares in earnings of JV and associated companies |
-771 | -1,208 | 57 | % | -1,239 | -2,611 | 111 | % | ||||||||||||||||
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Operating income |
4,252 | 2,078 | -51 | % | 10,083 | 11,165 | 11 | % | ||||||||||||||||
Financial income |
977 | 618 | 1,279 | 880 | -31 | % | ||||||||||||||||||
Financial expenses |
-636 | -924 | -942 | -1,197 | 27 | % | ||||||||||||||||||
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Income after financial items |
4,593 | 1,772 | -61 | % | 10,420 | 10,848 | 4 | % | ||||||||||||||||
Taxes |
-1,377 | -567 | -3,124 | -839 | ||||||||||||||||||||
Net income |
3,216 | 1,205 | -63 | % | 7,296 | 10,009 | 37 | % | ||||||||||||||||
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Net income attributable to: |
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- Stockholders of the Parent Company |
3,116 | 1,110 | 7,219 | 10,060 | ||||||||||||||||||||
- Non-controlling interests |
100 | 95 | 77 | -51 | ||||||||||||||||||||
Other information |
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Average number of shares, basic (million) |
3,204 | 3,215 | 3,203 | 3,213 | ||||||||||||||||||||
Earnings per share, basic (SEK) 2) |
0.97 | 0.35 | 2.25 | 3.13 | ||||||||||||||||||||
Earnings per share, diluted (SEK) 2) |
0.96 | 0.34 | 2.23 | 3.10 |
STATEMENT OF COMPREHENSIVE INCOME
Apr - Jun | Jan - Jun | |||||||||||||||
SEK million |
2011 | 2012 | 2011 | 2012 | ||||||||||||
Net income |
3,216 | 1,205 | 7,296 | 10,009 | ||||||||||||
Other comprehensive income |
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Actuarial gains and losses, and the effect of the asset ceiling, related to pensions |
-1,737 | -1,201 | -1,349 | -765 | ||||||||||||
Revaluation of other investments in shares and participations |
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Fair value remeasurement |
1 | 1 | | 1 | ||||||||||||
Cash flow hedges |
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Gains/losses arising during the period |
138 | -586 | 1,762 | 199 | ||||||||||||
Reclassification adjustments for gains/losses included in profit or loss |
-1,198 | 70 | -2,119 | -143 | ||||||||||||
Adjustments for amounts transferred to initial carrying amount of hedged items |
| | | 92 | ||||||||||||
Changes in cumulative translation adjustments |
1,143 | 1,323 | -2,274 | -681 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
128 | 34 | -616 | -18 | ||||||||||||
Tax on items relating to components of other comprehensive income |
666 | 545 | 444 | 153 | ||||||||||||
Total other comprehensive income |
-859 | 186 | -4,152 | -1,162 | ||||||||||||
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Total comprehensive income |
2,357 | 1,391 | 3,144 | 8,847 | ||||||||||||
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Total comprehensive income attributable to: |
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Stockholders of the Parent Company |
2,211 | 1,229 | 3,117 | 8,879 | ||||||||||||
Non-controlling interests |
146 | 162 | 27 | -32 |
1) | Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012 |
2) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson Second Quarter Report 2012 | 16 |
Dec 31 | Mar 31 | Jun 30 | ||||||||||
SEK million |
2011 | 2012 | 2012 | |||||||||
ASSETS |
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Non-current assets |
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Intangible assets |
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Capitalized development expenses |
3,523 | 3,529 | 3,795 | |||||||||
Goodwill |
27,438 | 31,245 | 31,342 | |||||||||
Intellectual property rights, brands and other intangible assets |
13,083 | 17,263 | 17,616 | |||||||||
Property, plant and equipment |
10,788 | 11,268 | 11,435 | |||||||||
Financial assets |
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Equity in JV and associated companies |
5,965 | 3,271 | 2,110 | |||||||||
Other investments in shares and participations |
2,199 | 2,122 | 2,207 | |||||||||
Customer financing, non-current |
1,400 | 1,139 | 1,340 | |||||||||
Other financial assets, non-current |
4,117 | 5,747 | 4,932 | |||||||||
Deferred tax assets |
13,020 | 13,231 | 14,164 | |||||||||
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81,533 | 88,815 | 88,941 | ||||||||||
Current assets |
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Inventories |
33,070 | 32,546 | 33,118 | |||||||||
Trade receivables |
64,522 | 60,695 | 67,320 | |||||||||
Customer financing, current |
2,845 | 2,798 | 2,581 | |||||||||
Other current receivables |
17,837 | 20,333 | 19,337 | |||||||||
Short-term investments 1) |
41,866 | 44,992 | 37,674 | |||||||||
Cash and cash equivalents |
38,676 | 30,638 | 28,707 | |||||||||
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198,816 | 192,002 | 188,737 | ||||||||||
Total assets |
280,349 | 280,817 | 277,678 | |||||||||
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EQUITY AND LIABILITIES |
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Equity |
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Stockholders equity |
143,105 | 150,506 | 143,827 | |||||||||
Non-controlling interest in equity of subsidiaries |
2,165 | 1,962 | 1,920 | |||||||||
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145,270 | 152,468 | 145,747 | ||||||||||
Non-current liabilities |
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Post-employment benefits |
10,016 | 9,339 | 9,859 | |||||||||
Provisions, non-current |
280 | 208 | 205 | |||||||||
Deferred tax liabilities |
2,250 | 3,749 | 3,732 | |||||||||
Borrowings, non-current |
23,256 | 22,969 | 23,033 | |||||||||
Other non-current liabilities |
2,248 | 2,590 | 2,534 | |||||||||
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38,050 | 38,855 | 39,363 | ||||||||||
Current liabilities |
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Provisions, current |
5,985 | 5,722 | 5,113 | |||||||||
Borrowings, current |
7,765 | 6,229 | 7,583 | |||||||||
Trade payables |
25,309 | 22,283 | 24,410 | |||||||||
Other current liabilities |
57,970 | 55,260 | 55,462 | |||||||||
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97,029 | 89,494 | 92,568 | ||||||||||
Total equity and liabilities |
280,349 | 280,817 | 277,678 | |||||||||
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Of which interest-bearing liabilities and post-employment benefits |
41,037 | 38,537 | 40,475 | |||||||||
Of which net cash |
39,505 | 37,093 | 25,906 | |||||||||
Assets pledged as collateral |
452 | 403 | 530 | |||||||||
Contingent liabilities |
609 | 581 | 518 |
1) | Including loan to ST-Ericsson of SEK 4,311 million as of June 30, 2012 |
(SEK 3,241 million as of March 31, 2012, SEK 2,759 million as of December 31, 2011)
Ericsson Second Quarter Report 2012 | 17 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Apr - Jun | Jan - Jun | Jan - Dec | ||||||||||||||||||
SEK million |
2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
Operating activities |
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Net income |
3,216 | 1,205 | 7,296 | 10,009 | 12,569 | |||||||||||||||
Adjustments to reconcile net income to cash |
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Taxes |
-29 | -1,185 | 692 | -2,303 | 1,994 | |||||||||||||||
Earnings/dividends in JV and associated companies |
783 | 1,193 | 1,235 | 2,483 | 3,710 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,172 | 2,401 | 4,381 | 4,716 | 9,036 | |||||||||||||||
Other |
-1,107 | -466 | -2,308 | -7,488 | -2,127 | |||||||||||||||
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5,035 | 3,148 | 11,296 | 7,417 | 25,182 | ||||||||||||||||
Changes in operating net assets |
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Inventories |
-2,370 | 43 | -5,832 | -16 | -3,243 | |||||||||||||||
Customer financing, current and non-current |
195 | 0 | 391 | 282 | 74 | |||||||||||||||
Trade receivables |
2,114 | -5,427 | 504 | -1,705 | -1,700 | |||||||||||||||
Trade payables |
-834 | 1,717 | -1,089 | -996 | -1,648 | |||||||||||||||
Provisions and post-employment benefits |
-485 | -353 | -1,237 | -2,124 | -5,695 | |||||||||||||||
Other operating assets and liabilities, net |
2,126 | -492 | -1,158 | -3,491 | -2,988 | |||||||||||||||
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746 | -4,512 | -8,421 | -8,050 | -15,200 | ||||||||||||||||
Cash flow from operating activities |
5,781 | -1,364 | 2,875 | -633 | 9,982 | |||||||||||||||
Investing activities |
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Investments in property, plant and equipment |
-1,196 | -994 | -2,176 | -2,642 | -4,994 | |||||||||||||||
Sales of property, plant and equipment |
58 | -10 | 155 | 299 | 386 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net 1) |
-507 | -110 | -962 | -1,840 | -3,128 | |||||||||||||||
Product development |
-429 | -525 | -698 | -776 | -1,515 | |||||||||||||||
Other investing activities |
-100 | -520 | 79 | -325 | -900 | |||||||||||||||
Short-term investments |
3,196 | 8,133 | 6,902 | 4,134 | 14,692 | |||||||||||||||
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Cash flow from investing activities |
1,022 | 5,974 | 3,300 | -1,150 | 4,541 | |||||||||||||||
Cash flow before financing activities |
6,803 | 4,610 | 6,175 | -1,783 | 14,523 | |||||||||||||||
Financing activities |
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Dividends paid |
-7,209 | -8,252 | -7,209 | -8,252 | -7,455 | |||||||||||||||
Other financing activities |
-1,097 | 1,112 | 143 | -206 | 961 | |||||||||||||||
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Cash flow from financing activities |
-8,306 | -7,140 | -7,066 | -8,458 | -6,494 | |||||||||||||||
Effect of exchange rate changes on cash |
211 | 599 | -509 | 272 | -217 | |||||||||||||||
Net change in cash |
-1,292 | -1,931 | -1,400 | -9,969 | 7,812 | |||||||||||||||
Cash and cash equivalents, beginning of period |
30,756 | 30,638 | 30,864 | 38,676 | 30,864 | |||||||||||||||
Cash and cash equivalents, end of period |
29,464 | 28,707 | 29,464 | 28,707 | 38,676 |
1) | Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson Second Quarter Report 2012 | 18 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Jan - Jun | Jan - Jun | Jan - Dec | ||||||||||
SEK million |
2011 | 2012 | 2011 | |||||||||
Opening balance |
146,785 | 145,270 | 146,785 | |||||||||
Total comprehensive income |
3,144 | 8,847 | 5,506 | |||||||||
Stock issue |
| 159 | | |||||||||
Sale/Repurchase of own shares |
45 | -126 | 92 | |||||||||
Stock purchase |
213 | 218 | 413 | |||||||||
Dividends paid |
-7,209 | -8,252 | -7,455 | |||||||||
Transactions with non-controlling interests |
-88 | -369 | -71 | |||||||||
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Closing balance |
142,890 | 145,747 | 145,270 | |||||||||
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Ericsson Second Quarter Report 2012 | 19 |
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Net sales |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | 55,319 | ||||||||||||||||||
Cost of sales |
-32,578 | -34,064 | -36,095 | -44,463 | -33,985 | -37,611 | ||||||||||||||||||
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Gross income |
20,388 | 20,706 | 19,423 | 19,204 | 16,989 | 17,708 | ||||||||||||||||||
Gross margin (%) |
38.5 | % | 37.8 | % | 35.0 | % | 30.2 | % | 33.3 | % | 32.0 | % | ||||||||||||
Research and development expenses |
-7,991 | -8,108 | -7,824 | -8,715 | -8,016 | -8,097 | ||||||||||||||||||
Selling and administrative expenses |
-6,441 | -7,741 | -5,664 | -6,837 | -6,232 | -6,855 | ||||||||||||||||||
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Operating expenses |
-14,432 | -15,849 | -13,488 | -15,552 | -14,248 | -14,952 | ||||||||||||||||||
Other operating income and expenses 1) |
343 | 166 | 366 | 403 | 7,749 | 530 | ||||||||||||||||||
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Operating income before shares in earnings of JV and associated companies |
6,299 | 5,023 | 6,301 | 4,055 | 10,490 | 3,286 | ||||||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
11.9 | % | 9.2 | % | 11.3 | % | 6.4 | % | 20.6 | % | 5.9 | % | ||||||||||||
Shares in earnings of JV and associated companies |
-468 | -771 | -640 | -1,899 | -1,403 | -1,208 | ||||||||||||||||||
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Operating income |
5,831 | 4,252 | 5,661 | 2,156 | 9,087 | 2,078 | ||||||||||||||||||
Financial income |
302 | 977 | 1,198 | 405 | 262 | 618 | ||||||||||||||||||
Financial expenses |
-306 | -636 | -987 | -732 | -273 | -924 | ||||||||||||||||||
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Income after financial items |
5,827 | 4,593 | 5,872 | 1,829 | 9,076 | 1,772 | ||||||||||||||||||
Taxes |
-1,747 | -1,377 | -2,090 | -338 | -272 | -567 | ||||||||||||||||||
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Net income |
4,080 | 3,216 | 3,782 | 1,491 | 8,804 | 1,205 | ||||||||||||||||||
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Net income attributable to: |
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- Stockholders of the Parent Company |
4,103 | 3,116 | 3,821 | 1,154 | 8,950 | 1,110 | ||||||||||||||||||
- Non-controlling interests |
-23 | 100 | -39 | 337 | -146 | 95 | ||||||||||||||||||
Other information |
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Average number of shares, basic (million) |
3,202 | 3,204 | 3,207 | 3,209 | 3,212 | 3,215 | ||||||||||||||||||
Earnings per share, basic (SEK) 2) |
1.28 | 0.97 | 1.19 | 0.36 | 2.79 | 0.35 | ||||||||||||||||||
Earnings per share, diluted (SEK) 2) |
1.27 | 0.96 | 1.18 | 0.36 | 2.76 | 0.34 |
1) | Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012 |
2) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson Second Quarter Report 2012 | 20 |
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Operating activities |
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Net income |
4,080 | 3,216 | 3,782 | 1,491 | 8,804 | 1,205 | ||||||||||||||||||
Adjustments to reconcile net income to cash |
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Taxes |
721 | -29 | 550 | 752 | -1,118 | -1,185 | ||||||||||||||||||
Earnings/dividends in JV and associated companies |
452 | 783 | 658 | 1,817 | 1,290 | 1,193 | ||||||||||||||||||
Depreciation, amortization and impairment losses |
2,209 | 2,172 | 2,227 | 2,428 | 2,315 | 2,401 | ||||||||||||||||||
Other |
-1,201 | -1,107 | -291 | 472 | -7,022 | -466 | ||||||||||||||||||
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6,261 | 5,035 | 6,926 | 6,960 | 4,269 | 3,148 | |||||||||||||||||||
Changes in operating net assets |
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Inventories |
-3,462 | -2,370 | -2,619 | 5,208 | -59 | 43 | ||||||||||||||||||
Customer financing, current and non-current |
196 | 195 | -607 | 290 | 282 | 0 | ||||||||||||||||||
Trade receivables |
-1,610 | 2,114 | -2,769 | 565 | 3,722 | -5,427 | ||||||||||||||||||
Trade payables |
-255 | -834 | -805 | 246 | -2,713 | 1,717 | ||||||||||||||||||
Provisions and post-employment benefits |
-752 | -485 | -2,180 | -2,278 | -1,771 | -353 | ||||||||||||||||||
Other operating assets and liabilities, net |
-3,284 | 2,126 | 3,694 | -5,524 | -2,999 | -492 | ||||||||||||||||||
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-9,167 | 746 | -5,286 | -1,493 | -3,538 | -4,512 | |||||||||||||||||||
Cash flow from operating activities |
-2,906 | 5,781 | 1,640 | 5,467 | 731 | -1,364 | ||||||||||||||||||
Investing activities |
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Investments in property, plant and equipment |
-980 | -1,196 | -1,294 | -1,524 | -1,648 | -994 | ||||||||||||||||||
Sales of property, plant and equipment |
97 | 58 | 59 | 172 | 309 | -10 | ||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net 1) |
-455 | -507 | -1,931 | -235 | -1,730 | -110 | ||||||||||||||||||
Product development |
-269 | -429 | -257 | -560 | -251 | -525 | ||||||||||||||||||
Other investing activities |
179 | -100 | -769 | -210 | 195 | -520 | ||||||||||||||||||
Short-term investments |
3,706 | 3,196 | 9,323 | -1,533 | -3,999 | 8,133 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash flow from investing activities |
2,278 | 1,022 | 5,131 | -3,890 | -7,124 | 5,974 | ||||||||||||||||||
Cash flow before financing activities |
-628 | 6,803 | 6,771 | 1,577 | -6,393 | 4,610 | ||||||||||||||||||
Financing activities |
||||||||||||||||||||||||
Dividends paid |
| -7,209 | -241 | -5 | | -8,252 | ||||||||||||||||||
Other financing activities |
1,240 | -1,097 | -10 | 828 | -1,318 | 1,112 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash flow from financing activities |
1,240 | -8,306 | -251 | 823 | -1,318 | -7,140 | ||||||||||||||||||
Effect of exchange rate changes on cash |
-720 | 211 | 278 | 14 | -327 | 599 | ||||||||||||||||||
Net change in cash |
-108 | -1,292 | 6,798 | 2,414 | -8,038 | -1,931 | ||||||||||||||||||
Cash and cash equivalents, beginning of period |
30,864 | 30,756 | 29,464 | 36,262 | 38,676 | 30,638 | ||||||||||||||||||
Cash and cash equivalents, end of period |
30,756 | 29,464 | 36,262 | 38,676 | 30,638 | 28,707 |
1) | Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson Second Quarter Report 2012 | 21 |
The Group
This interim report is prepared in accordance with IAS 34. The term IFRS used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASBs Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2011, and should be read in conjunction with that annual report.
As from January 1, 2012, the Company has applied the following new or amended IFRSs and IFRICs:
| Amendment to IAS 12, income taxes: deferred tax: recovery of underlying assets (not yet endorsed by the EU) |
| Amendments to IFRS 7, Financial instruments, disclosures: transfers of Financial Assets |
None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no difference between IFRS effective as per June 30, 2012 and IFRS as endorsed by the EU, except for IAS 12 above.
Ericsson Second Quarter Report 2012 | 22 |
NET SALES BY SEGMENT BY QUARTER
Segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, thus their sales are not included.
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Networks |
33,249 | 33,360 | 32,506 | 33,280 | 27,314 | 27,766 | ||||||||||||||||||
Global Services |
17,435 | 19,036 | 20,438 | 26,975 | 20,631 | 24,074 | ||||||||||||||||||
Of which Professional Services |
12,571 | 13,463 | 14,719 | 18,081 | 14,884 | 16,947 | ||||||||||||||||||
Of which Managed Services |
4,924 | 4,724 | 5,304 | 6,046 | 5,708 | 6,468 | ||||||||||||||||||
Of which Network Rollout |
4,864 | 5,573 | 5,719 | 8,894 | 5,747 | 7,127 | ||||||||||||||||||
Support Solutions |
2,282 | 2,374 | 2,574 | 3,412 | 3,029 | 3,479 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | 55,319 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Networks |
-9 | % | 0 | % | -3 | % | 2 | % | -18 | % | 2 | % | ||||||||||||
Global Services |
-24 | % | 9 | % | 7 | % | 32 | % | -24 | % | 17 | % | ||||||||||||
Of which Professional Services |
-25 | % | 7 | % | 9 | % | 23 | % | -18 | % | 14 | % | ||||||||||||
Of which Managed Services |
-8 | % | -4 | % | 12 | % | 14 | % | -6 | % | 13 | % | ||||||||||||
Of which Network Rollout |
-21 | % | 15 | % | 3 | % | 56 | % | -35 | % | 24 | % | ||||||||||||
Support Solutions |
-34 | % | 4 | % | 8 | % | 33 | % | -11 | % | 15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-16 | % | 3 | % | 1 | % | 15 | % | -20 | % | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year over year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Networks |
35 | % | 31 | % | 25 | % | -9 | % | -18 | % | -17 | % | ||||||||||||
Global Services |
-4 | % | -5 | % | 7 | % | 18 | % | 18 | % | 26 | % | ||||||||||||
Of which Professional Services |
-5 | % | -9 | % | 7 | % | 8 | % | 18 | % | 26 | % | ||||||||||||
Of which Managed Services |
1 | % | -16 | % | 1 | % | 13 | % | 16 | % | 37 | % | ||||||||||||
Of which Network Rollout |
0 | % | 6 | % | 7 | % | 44 | % | 18 | % | 28 | % | ||||||||||||
Support Solutions |
-1 | % | -2 | % | 11 | % | -2 | % | 33 | % | 47 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
17 | % | 14 | % | 17 | % | 1 | % | -4 | % | 1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
Networks |
33,249 | 66,609 | 99,115 | 132,395 | 27,314 | 55,080 | ||||||||||||||||||
Global Services |
17,435 | 36,471 | 56,909 | 83,884 | 20,631 | 44,705 | ||||||||||||||||||
Of which Professional Services |
12,571 | 26,034 | 40,753 | 58,834 | 14,884 | 31,830 | ||||||||||||||||||
Of which Managed Services |
4,924 | 9,648 | 14,952 | 20,998 | 5,708 | 12,176 | ||||||||||||||||||
Of which Network Rollout |
4,864 | 10,437 | 16,156 | 25,050 | 5,747 | 12,875 | ||||||||||||||||||
Support Solutions |
2,282 | 4,656 | 7,230 | 10,642 | 3,029 | 6,508 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
52,966 | 107,736 | 163,254 | 226,921 | 50,974 | 106,293 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Year to date, | 2011 | 2012 | ||||||||||||||||||||||
year over year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
Networks |
35 | % | 33 | % | 30 | % | 17 | % | -18 | % | -17 | % | ||||||||||||
Global Services |
-4 | % | -4 | % | -1 | % | 5 | % | 18 | % | 23 | % | ||||||||||||
Of which Professional Services |
-5 | % | -7 | % | -3 | % | 1 | % | 18 | % | 22 | % | ||||||||||||
Of which Managed Services |
1 | % | -8 | % | -5 | % | -1 | % | 16 | % | 26 | % | ||||||||||||
Of which Network Rollout |
0 | % | 3 | % | 5 | % | 16 | % | 18 | % | 23 | % | ||||||||||||
Support Solutions |
-1 | % | -2 | % | 3 | % | 1 | % | 33 | % | 40 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
17 | % | 16 | % | 16 | % | 12 | % | -4 | % | -1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Second Quarter Report 2012 | 23 |
OPERATING INCOME BY SEGMENT BY QUARTER
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses |
2) | Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012 |
Ericsson Second Quarter Report 2012 | 24 |
NET SALES BY REGION BY QUARTER
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
North America |
13,162 | 12,324 | 12,096 | 11,203 | 12,775 | 12,987 | ||||||||||||||||||
Latin America |
4,015 | 4,927 | 6,012 | 7,028 | 4,822 | 5,243 | ||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
3,365 | 4,552 | 3,527 | 3,781 | 2,292 | 3,358 | ||||||||||||||||||
Western & Central Europe 2) |
4,806 | 4,342 | 4,612 | 5,270 | 4,306 | 4,094 | ||||||||||||||||||
Mediterranean 2) |
4,799 | 5,543 | 5,225 | 8,240 | 4,620 | 6,214 | ||||||||||||||||||
Middle East |
3,070 | 3,546 | 3,650 | 5,195 | 3,157 | 3,701 | ||||||||||||||||||
Sub Saharan Africa |
2,212 | 2,214 | 2,519 | 3,218 | 2,200 | 2,791 | ||||||||||||||||||
India |
3,169 | 2,798 | 2,273 | 1,522 | 1,421 | 1,700 | ||||||||||||||||||
China & North East Asia |
8,633 | 9,025 | 9,662 | 10,889 | 9,154 | 8,423 | ||||||||||||||||||
South East Asia & Oceania |
3,108 | 3,033 | 3,720 | 4,009 | 3,374 | 3,674 | ||||||||||||||||||
Other 1) 2) |
2,627 | 2,466 | 2,222 | 3,312 | 2,853 | 3,134 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | 55,319 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
927 | 1,103 | 944 | 908 | 834 | 1,282 | ||||||||||||||||||
2) Of which EU |
10,020 | 10,317 | 10,195 | 13,428 | 9,502 | 11,201 | ||||||||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
North America |
-6 | % | -6 | % | -2 | % | -7 | % | 14 | % | 2 | % | ||||||||||||
Latin America |
-34 | % | 23 | % | 22 | % | 17 | % | -31 | % | 9 | % | ||||||||||||
Northern Europe & Central Asia 1) 2) |
-30 | % | 35 | % | -23 | % | 7 | % | -39 | % | 47 | % | ||||||||||||
Western & Central Europe 2) |
-19 | % | -10 | % | 6 | % | 14 | % | -18 | % | -5 | % | ||||||||||||
Mediterranean 2) |
-31 | % | 16 | % | -6 | % | 58 | % | -44 | % | 35 | % | ||||||||||||
Middle East |
-34 | % | 16 | % | 3 | % | 42 | % | -39 | % | 17 | % | ||||||||||||
Sub Saharan Africa |
9 | % | 0 | % | 14 | % | 28 | % | -32 | % | 27 | % | ||||||||||||
India |
11 | % | -12 | % | -19 | % | -33 | % | -7 | % | 20 | % | ||||||||||||
China & North East Asia |
-9 | % | 5 | % | 7 | % | 13 | % | -16 | % | -8 | % | ||||||||||||
South East Asia & Oceania |
-21 | % | -2 | % | 23 | % | 8 | % | -16 | % | 9 | % | ||||||||||||
Other 1) 2) |
25 | % | -6 | % | -10 | % | 49 | % | -14 | % | 10 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-16 | % | 3 | % | 1 | % | 15 | % | -20 | % | 9 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
-21 | % | 19 | % | -14 | % | -4 | % | -8 | % | 54 | % | ||||||||||||
2) Of which EU |
-20 | % | 3 | % | -1 | % | 32 | % | -29 | % | 18 | % | ||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year-over-year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
North America |
39 | % | -6 | % | -6 | % | -20 | % | -3 | % | 5 | % | ||||||||||||
Latin America |
1 | % | 17 | % | 64 | % | 16 | % | 20 | % | 6 | % | ||||||||||||
Northern Europe & Central Asia 1) 2) |
46 | % | 70 | % | 49 | % | -22 | % | -32 | % | -26 | % | ||||||||||||
Western & Central Europe 2) |
-8 | % | -2 | % | 7 | % | -11 | % | -10 | % | -6 | % | ||||||||||||
Mediterranean 2) |
-5 | % | -2 | % | 4 | % | 19 | % | -4 | % | 12 | % | ||||||||||||
Middle East |
-22 | % | -7 | % | 34 | % | 12 | % | 3 | % | 4 | % | ||||||||||||
Sub Saharan Africa |
-9 | % | -25 | % | 40 | % | 59 | % | -1 | % | 26 | % | ||||||||||||
India |
38 | % | 107 | % | 7 | % | -46 | % | -55 | % | -39 | % | ||||||||||||
China & North East Asia |
74 | % | 96 | % | 39 | % | 15 | % | 6 | % | -7 | % | ||||||||||||
South East Asia & Oceania |
-12 | % | -17 | % | -3 | % | 2 | % | 9 | % | 21 | % | ||||||||||||
Other 1) 2) |
37 | % | 49 | % | 19 | % | 57 | % | 9 | % | 27 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
17 | % | 14 | % | 17 | % | 1 | % | -4 | % | 1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
-11 | % | 11 | % | -8 | % | -22 | % | -10 | % | 16 | % | ||||||||||||
2) Of which EU |
-9 | % | -1 | % | 5 | % | 7 | % | -5 | % | 9 | % |
Ericsson Second Quarter Report 2012 | 25 |
NET SALES BY REGION BY QUARTER (continued)
2011 | 2012 | |||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
North America |
13,162 | 25,486 | 37,582 | 48,785 | 12,775 | 25,762 | ||||||||||||||||||
Latin America |
4,015 | 8,942 | 14,954 | 21,982 | 4,822 | 10,065 | ||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
3,365 | 7,917 | 11,444 | 15,225 | 2,292 | 5,650 | ||||||||||||||||||
Western & Central Europe 2) |
4,806 | 9,148 | 13,760 | 19,030 | 4,306 | 8,400 | ||||||||||||||||||
Mediterranean 2) |
4,799 | 10,342 | 15,567 | 23,807 | 4,620 | 10,834 | ||||||||||||||||||
Middle East |
3,070 | 6,616 | 10,266 | 15,461 | 3,157 | 6,858 | ||||||||||||||||||
Sub Saharan Africa |
2,212 | 4,426 | 6,945 | 10,163 | 2,200 | 4,991 | ||||||||||||||||||
India |
3,169 | 5,967 | 8,240 | 9,762 | 1,421 | 3,121 | ||||||||||||||||||
China & North East Asia |
8,633 | 17,658 | 27,320 | 38,209 | 9,154 | 17,577 | ||||||||||||||||||
South East Asia & Oceania |
3,108 | 6,141 | 9,861 | 13,870 | 3,374 | 7,048 | ||||||||||||||||||
Other 1) 2) |
2,627 | 5,093 | 7,315 | 10,627 | 2,853 | 5,987 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
52,966 | 107,736 | 163,254 | 226,921 | 50,974 | 106,293 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
927 | 2,030 | 2,974 | 3,882 | 834 | 2,116 | ||||||||||||||||||
2) Of which EU |
10,020 | 20,337 | 30,532 | 43,960 | 9,502 | 20,703 | ||||||||||||||||||
Year to date, | 2011 | 2012 | ||||||||||||||||||||||
year-over-year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
North America |
39 | % | 13 | % | 6 | % | -1 | % | -3 | % | 1 | % | ||||||||||||
Latin America |
1 | % | 10 | % | 26 | % | 23 | % | 20 | % | 13 | % | ||||||||||||
Northern Europe & Central Asia1) 2) |
46 | % | 59 | % | 56 | % | 25 | % | -32 | % | -29 | % | ||||||||||||
Western & Central Europé 2) |
-8 | % | -5 | % | -1 | % | -4 | % | -10 | % | -8 | % | ||||||||||||
Mediterranean2) |
-5 | % | -3 | % | -1 | % | 5 | % | -4 | % | 5 | % | ||||||||||||
Middle East |
-22 | % | -15 | % | -2 | % | 2 | % | 3 | % | 4 | % | ||||||||||||
Sub Saharan Africa |
-9 | % | -18 | % | -3 | % | 11 | % | -1 | % | 13 | % | ||||||||||||
India |
38 | % | 63 | % | 42 | % | 13 | % | -55 | % | -48 | % | ||||||||||||
China & North East Asia |
74 | % | 85 | % | 66 | % | 47 | % | 6 | % | 0 | % | ||||||||||||
South East Asia & Oceania |
-12 | % | -14 | % | -10 | % | -7 | % | 9 | % | 15 | % | ||||||||||||
Other1) 2) |
37 | % | 43 | % | 35 | % | 41 | % | 9 | % | 18 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
17 | % | 16 | % | 16 | % | 12 | % | -4 | % | -1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
-11 | % | -1 | % | -3 | % | -8 | % | -10 | % | 4 | % | ||||||||||||
2) Of which EU |
-9 | % | -5 | % | -2 | % | 1 | % | -5 | % | 2 | % |
Q2 | Jan - Jun | |||||||||||||||
Country |
2011 | 2012 | 2011 | 2012 | ||||||||||||
UNITED STATES |
22 | % | 23 | % | 23 | % | 24 | % | ||||||||
JAPAN |
5 | % | 7 | % | 7 | % | 8 | % | ||||||||
CHINA |
8 | % | 6 | % | 7 | % | 5 | % | ||||||||
ITALY |
4 | % | 4 | % | 4 | % | 4 | % | ||||||||
BRAZIL |
3 | % | 4 | % | 3 | % | 4 | % |
Ericsson Second Quarter Report 2012 | 26 |
NET SALES BY REGION BY SEGMENT
Since the segment ST-Ericsson is reported in accordance with the equity method, their sales are not included below. Net sales related to these segments are disclosed under SEGMENT RESULTS. Net sales related to other segments are set out below.
Revenue from Telcordia is reported 50/50 between Segments Global Services and Support Solutions. In the regional dimension, all of Telcordia sales is reported in Support Solutions, except for North America where it is split 50/50. Multimedia brokering (IPX) was previously reported in each region in Segment Support Solutions, from Q112 it is part of region Other in Segment Support Solutions.
Isolated quarter | Q2 2012, SEK million | Accumulated Jan - Jun 2012, SEK million | ||||||||||||||||||||||||||||||
Net- works |
Global Services |
Support Solutions |
Total | Net- works |
Global Services |
Support Solutions |
Total | |||||||||||||||||||||||||
North America |
6,122 | 6,131 | 734 | 12,987 | 13,607 | 10,833 | 1,322 | 25,762 | ||||||||||||||||||||||||
Latin America |
2,293 | 2,505 | 445 | 5,243 | 4,357 | 5,029 | 679 | 10,065 | ||||||||||||||||||||||||
Northern Europe & Central Asia |
2,059 | 1,208 | 91 | 3,358 | 3,251 | 2,228 | 171 | 5,650 | ||||||||||||||||||||||||
Western & Central Europe |
1,346 | 2,579 | 169 | 4,094 | 2,881 | 5,155 | 364 | 8,400 | ||||||||||||||||||||||||
Mediterranean |
2,737 | 3,308 | 169 | 6,214 | 4,763 | 5,732 | 339 | 10,834 | ||||||||||||||||||||||||
Middle East |
1,561 | 1,796 | 344 | 3,701 | 2,878 | 3,448 | 532 | 6,858 | ||||||||||||||||||||||||
Sub Saharan Africa |
1,555 | 939 | 297 | 2,791 | 2,812 | 1,732 | 447 | 4,991 | ||||||||||||||||||||||||
India |
936 | 645 | 119 | 1,700 | 1,596 | 1,268 | 257 | 3,121 | ||||||||||||||||||||||||
China & North East Asia |
5,154 | 3,132 | 137 | 8,423 | 11,434 | 5,884 | 259 | 17,577 | ||||||||||||||||||||||||
South East Asia & Oceania |
1,885 | 1,650 | 139 | 3,674 | 3,705 | 3,068 | 275 | 7,048 | ||||||||||||||||||||||||
Other |
2,118 | 181 | 835 | 3,134 | 3,796 | 328 | 1,863 | 5,987 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
27,766 | 24,074 | 3,479 | 55,319 | 55,080 | 44,705 | 6,508 | 106,293 | ||||||||||||||||||||||||
Share of Total |
50 | % | 44 | % | 6 | % | 100 | % | 52 | % | 42 | % | 6 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Q2 2012 | ||||||||||||||||||||||||||||||||
Sequential change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||||||
North America |
-18 | % | 30 | % | 25 | % | 2 | % | ||||||||||||||||||||||||
Latin America |
11 | % | -1 | % | 90 | % | 9 | % | ||||||||||||||||||||||||
Northern Europe & Central Asia |
73 | % | 18 | % | 14 | % | 47 | % | ||||||||||||||||||||||||
Western & Central Europe |
-12 | % | 0 | % | -13 | % | -5 | % | ||||||||||||||||||||||||
Mediterranean |
35 | % | 36 | % | -1 | % | 35 | % | ||||||||||||||||||||||||
Middle East |
19 | % | 9 | % | 83 | % | 17 | % | ||||||||||||||||||||||||
Sub Saharan Africa |
24 | % | 18 | % | 98 | % | 27 | % | ||||||||||||||||||||||||
India |
42 | % | 4 | % | -14 | % | 20 | % | ||||||||||||||||||||||||
China & North East Asia |
-18 | % | 14 | % | 12 | % | -8 | % | ||||||||||||||||||||||||
South East Asia & Oceania |
4 | % | 16 | % | 2 | % | 9 | % | ||||||||||||||||||||||||
Other |
26 | % | 23 | % | -19 | % | 10 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total |
2 | % | 17 | % | 15 | % | 9 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Q2 2012 | ||||||||||||||||||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||||||
North America |
-22 | % | 47 | % | 170 | % | 5 | % | ||||||||||||||||||||||||
Latin America |
-19 | % | 33 | % | 100 | % | 6 | % | ||||||||||||||||||||||||
Northern Europe & Central Asia |
-36 | % | 0 | % | -33 | % | -26 | % | ||||||||||||||||||||||||
Western & Central Europe |
-21 | % | 7 | % | -25 | % | -6 | % | ||||||||||||||||||||||||
Mediterranean |
10 | % | 18 | % | -35 | % | 12 | % | ||||||||||||||||||||||||
Middle East |
-4 | % | 6 | % | 60 | % | 4 | % | ||||||||||||||||||||||||
Sub Saharan Africa |
31 | % | 7 | % | 95 | % | 26 | % | ||||||||||||||||||||||||
India |
-46 | % | -21 | % | -52 | % | -39 | % | ||||||||||||||||||||||||
China & North East Asia |
-25 | % | 49 | % | 104 | % | -7 | % | ||||||||||||||||||||||||
South East Asia & Oceania |
11 | % | 40 | % | -5 | % | 21 | % | ||||||||||||||||||||||||
Other |
-2 | % | -234 | % | 94 | % | 27 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total |
-17 | % | 26 | % | 47 | % | 1 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Accumulated Jan - Jun 2012 | ||||||||||||||||||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||||||
North America |
-20 | % | 35 | % | 154 | % | 1 | % | ||||||||||||||||||||||||
Latin America |
-10 | % | 37 | % | 56 | % | 13 | % | ||||||||||||||||||||||||
Northern Europe & Central Asia |
-42 | % | 9 | % | -35 | % | -29 | % | ||||||||||||||||||||||||
Western & Central Europe |
-25 | % | 7 | % | -18 | % | -8 | % | ||||||||||||||||||||||||
Mediterranean |
0 | % | 13 | % | -37 | % | 5 | % | ||||||||||||||||||||||||
Middle East |
-13 | % | 16 | % | 56 | % | 4 | % | ||||||||||||||||||||||||
Sub Saharan Africa |
18 | % | 1 | % | 37 | % | 13 | % | ||||||||||||||||||||||||
India |
-60 | % | -17 | % | -40 | % | -48 | % | ||||||||||||||||||||||||
China & North East Asia |
-14 | % | 42 | % | 45 | % | 0 | % | ||||||||||||||||||||||||
South East Asia & Oceania |
8 | % | 27 | % | -10 | % | 15 | % | ||||||||||||||||||||||||
Other |
-9 | % | 865 | % | 114 | % | 18 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total |
-17 | % | 23 | % | 40 | % | -1 | % | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Ericsson Second Quarter Report 2012 | 27 |
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Opening balance |
9,744 | 9,529 | 9,335 | 8,065 | 6,265 | 5,930 | ||||||||||||||||||
Additions |
1,304 | 2,032 | 633 | 838 | 1,003 | 616 | ||||||||||||||||||
Utilization/Cash out |
-1,091 | -1,908 | -1,464 | -1,524 | -980 | -850 | ||||||||||||||||||
Of which restructuring |
-762 | -1,220 | -747 | -494 | -401 | -342 | ||||||||||||||||||
Reversal of excess amounts |
-88 | -451 | -556 | -824 | -370 | -453 | ||||||||||||||||||
Reclassification, translation difference and other |
-340 | 133 | 117 | -290 | 12 | 75 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Closing balance |
9,529 | 9,335 | 8,065 | 6,265 | 5,930 | 5,318 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
Opening balance |
9,744 | 9,744 | 9,744 | 9,744 | 6,265 | 6,265 | ||||||||||||||||||
Additions |
1,304 | 3,336 | 3,969 | 4,807 | 1,003 | 1,619 | ||||||||||||||||||
Utilization/Cash out |
-1,091 | -2,999 | -4,463 | -5,987 | -980 | -1,830 | ||||||||||||||||||
Of which restructuring |
-762 | -1,982 | -2,729 | -3,223 | -401 | -743 | ||||||||||||||||||
Reversal of excess amounts |
-88 | -539 | -1,095 | -1,919 | -370 | -823 | ||||||||||||||||||
Reclassification, translation difference and other |
-340 | -207 | -90 | -380 | 12 | 87 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Closing balance |
9,529 | 9,335 | 8,065 | 6,265 | 5,930 | 5,318 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2011 | 2012 | |||||||||||||||||||||||
End of period |
Mar 31 | Jun 30 | Sep 30 | Dec 31 | Mar 31 | Jun 30 | ||||||||||||||||||
North America |
13,531 | 14,553 | 14,782 | 14,801 | 16,281 | 15,872 | ||||||||||||||||||
Latin America |
7,394 | 9,875 | 10,315 | 11,191 | 11,538 | 11,176 | ||||||||||||||||||
Northern Europe & Central Asia 1) |
21,339 | 21,451 | 21,083 | 20,987 | 21,341 | 21,457 | ||||||||||||||||||
Western & Central Europe |
10,629 | 10,518 | 10,601 | 10,806 | 10,900 | 10,837 | ||||||||||||||||||
Mediterranean |
10,907 | 11,069 | 11,521 | 11,645 | 11,858 | 11,986 | ||||||||||||||||||
Middle East |
4,057 | 4,160 | 4,304 | 4,336 | 4,361 | 4,231 | ||||||||||||||||||
Sub Saharan Africa |
1,644 | 1,637 | 1,891 | 2,283 | 2,317 | 2,277 | ||||||||||||||||||
India |
7,448 | 8,563 | 9,672 | 11,535 | 12,567 | 12,644 | ||||||||||||||||||
China & North East Asia |
10,111 | 11,601 | 12,313 | 12,567 | 13,016 | 13,233 | ||||||||||||||||||
South East Asia & Oceania |
4,486 | 4,502 | 4,408 | 4,374 | 4,372 | 4,382 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
91,546 | 97,929 | 100,890 | 104,525 | 108,551 | 108,095 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which Sweden |
17,771 | 17,930 | 17,588 | 17,500 | 17,767 | 17,890 |
INFORMATION ON INVESTMENTS IN ASSETS SUBJECT TO DEPRECIATION, AMORTIZATION, IMPAIRMENT AND WRITE-DOWNS
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Additions |
||||||||||||||||||||||||
Property, plant and equipment |
980 | 1,196 | 1,294 | 1,524 | 1,648 | 994 | ||||||||||||||||||
Capitalized development expenses |
269 | 429 | 257 | 560 | 251 | 525 | ||||||||||||||||||
IPR, brands and other intangible assets |
359 | 29 | 488 | 97 | 5,570 | 992 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
1,608 | 1,654 | 2,039 | 2,181 | 7,469 | 2,511 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||
Property, plant and equipment |
841 | 821 | 827 | 1,057 | 914 | 982 | ||||||||||||||||||
Capitalized development expenses |
232 | 240 | 263 | 267 | 245 | 259 | ||||||||||||||||||
IPR, brands and other intangible assets, etc. |
1,136 | 1,111 | 1,137 | 1,104 | 1,156 | 1,160 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
2,209 | 2,172 | 2,227 | 2,428 | 2,315 | 2,401 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Second Quarter Report 2012 | 28 |
Apr - Jun | Jan - Jun | Jan - Dec | ||||||||||||||||||
2011 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
Number of shares and earnings per share |
||||||||||||||||||||
Number of shares, end of period (million) |
3,273 | 3,305 | 3,273 | 3,305 | 3,273 | |||||||||||||||
Of which class A-shares (million) |
262 | 262 | 262 | 262 | 262 | |||||||||||||||
Of which class B-shares (million) |
3,011 | 3,043 | 3,011 | 3,043 | 3,011 | |||||||||||||||
Number of treasury shares, end of period (million) |
68 | 90 | 68 | 90 | 63 | |||||||||||||||
Number of shares outstanding, basic, end of period (million) |
3,205 | 3,215 | 3,205 | 3,215 | 3,211 | |||||||||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,232 | 3,245 | 3,232 | 3,245 | 3,238 | |||||||||||||||
Average number of treasury shares (million) |
69 | 69 | 70 | 65 | 68 | |||||||||||||||
Average number of shares outstanding, basic (million) |
3,204 | 3,215 | 3,203 | 3,213 | 3,206 | |||||||||||||||
Average number of shares outstanding, diluted (million) 1) |
3,231 | 3,245 | 3,230 | 3,243 | 3,233 | |||||||||||||||
Earnings per share, basic (SEK) |
0.97 | 0.35 | 2.25 | 3.13 | 3.80 | |||||||||||||||
Earnings per share, diluted (SEK) 1) |
0.96 | 0.34 | 2.23 | 3.10 | 3.77 | |||||||||||||||
1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share |
| |||||||||||||||||||
Ratios |
||||||||||||||||||||
Days sales outstanding |
| | 99 | 111 | 91 | |||||||||||||||
Inventory turnover days |
90 | 80 | 89 | 84 | 78 | |||||||||||||||
Payable days |
67 | 57 | 68 | 63 | 62 | |||||||||||||||
Equity ratio (%) |
| | 51.9 | % | 52.5 | % | 51.8 | % | ||||||||||||
Capital turnover (times) |
1.2 | 1.2 | 1.2 | 1.1 | 1.2 | |||||||||||||||
Payment readiness, end of period |
| | 84,637 | 72,727 | 86,570 | |||||||||||||||
Payment readiness, as percentage of sales |
| | 39.3 | % | 34.2 | % | 38.1 | % | ||||||||||||
Exchange rates used in the consolidation |
||||||||||||||||||||
SEK/EUR - average rate |
| | 8.94 | 8.87 | 9.02 | |||||||||||||||
- closing rate |
| | 9.16 | 8.77 | 8.92 | |||||||||||||||
SEK/USD - average rate |
| | 6.35 | 6.82 | 6.48 | |||||||||||||||
- closing rate |
| | 6.33 | 6.96 | 6.90 | |||||||||||||||
Other |
||||||||||||||||||||
Regional inventory, end of period, |
22,485 | 22,266 | 22,485 | 22,266 | 19,921 | |||||||||||||||
Export sales from Sweden |
30,006 | 25,794 | 64,050 | 52,988 | 116,507 |
ERICSSON PLANNING ASSUMPTIONS FOR YEAR 2012
Research and development expenses
We estimate R&D expenses for the full year 2012 to be at around SEK 30-32 b. The estimate includes amortizations/write-downs of intangible assets related to major acquisitions previously made. However, currency effects may cause this to change.
Capital expenditures
Excluding acquisitions, the capital expenditures in relation to sales are not expected to be significantly different in 2012, remaining at roughly two percent of sales.
Utilization of provisions
The expected utilization of provisions for year 2012 is stated in the Annual Report 2011.
Ericsson Second Quarter Report 2012 | 29 |
RESTRUCTURING CHARGES BY FUNCTION
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Cost of sales |
-185 | -257 | -283 | -506 | -496 | -389 | ||||||||||||||||||
Research and development expenses |
-180 | -208 | -115 | -58 | -19 | -107 | ||||||||||||||||||
Selling and administrative expenses |
-8 | -1,236 | 22 | -170 | -54 | -98 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson |
-373 | -1,701 | -376 | -734 | -569 | -594 | ||||||||||||||||||
Share in Sony Ericsson charges |
| | | -419 | | | ||||||||||||||||||
Share in ST-Ericsson charges |
-15 | -77 | -17 | -31 | -30 | -190 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-15 | -77 | -17 | -450 | -30 | -190 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-388 | -1,778 | -393 | -1,184 | -599 | -784 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
Cost of sales |
-185 | -442 | -725 | -1,231 | -496 | -885 | ||||||||||||||||||
Research and development expenses |
-180 | -388 | -503 | -561 | -19 | -126 | ||||||||||||||||||
Selling and administrative expenses |
-8 | -1,244 | -1,222 | -1,392 | -54 | -152 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson |
-373 | -2,074 | -2,450 | -3,184 | -569 | -1,163 | ||||||||||||||||||
Share in Sony Ericsson charges |
| | | -419 | | | ||||||||||||||||||
Share in ST-Ericsson charges |
-15 | -92 | -109 | -140 | -30 | -220 | ||||||||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-15 | -92 | -109 | -559 | -30 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-388 | -2,166 | -2,559 | -3,743 | -599 | -1,383 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING CHARGES BY SEGMENT
2011 | 2012 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||||||||||||
Networks |
-205 | -1,039 | -121 | -235 | -87 | -167 | ||||||||||||||||||
Global Services |
-166 | -487 | -254 | -456 | -473 | -415 | ||||||||||||||||||
Of which Professional Services |
-145 | -361 | -225 | -264 | -358 | -302 | ||||||||||||||||||
Of which Network Rollout |
-21 | -126 | -29 | -192 | -115 | -113 | ||||||||||||||||||
Support Solutions |
-2 | -119 | -6 | -16 | -9 | -12 | ||||||||||||||||||
Unallocated |
| -56 | 5 | -27 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson |
-373 | -1,701 | -376 | -734 | -569 | -594 | ||||||||||||||||||
Sony Ericsson |
| | | -419 | | | ||||||||||||||||||
ST-Ericsson |
-15 | -77 | -17 | -31 | -30 | -190 | ||||||||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-15 | -77 | -17 | -450 | -30 | -190 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-388 | -1,778 | -393 | -1,184 | -599 | -784 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2011 | 2012 | |||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | ||||||||||||||||||
Networks |
-205 | -1,244 | -1,365 | -1,600 | -87 | -254 | ||||||||||||||||||
Global Services |
-166 | -653 | -907 | -1,363 | -473 | -888 | ||||||||||||||||||
Of which Professional Services |
-145 | -506 | -731 | -995 | -358 | -660 | ||||||||||||||||||
Of which Network Rollout |
-21 | -147 | -176 | -368 | -115 | -228 | ||||||||||||||||||
Support Solutions |
-2 | -121 | -127 | -143 | -9 | -21 | ||||||||||||||||||
Unallocated |
| -56 | -51 | -78 | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson |
-373 | -2,074 | -2,450 | -3,184 | -569 | -1,163 | ||||||||||||||||||
Sony Ericsson |
| | | -419 | | | ||||||||||||||||||
ST-Ericsson |
-15 | -92 | -109 | -140 | -30 | -220 | ||||||||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-15 | -92 | -109 | -559 | -30 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-388 | -2,166 | -2,559 | -3,743 | -599 | -1,383 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Second Quarter Report 2012 | 30 |