Ericsson reports second quarter results. Sales at SEK 55.6 billion

Cristian Hatis 1 Min Read

Ericsson report show that sales were SEK 55.6 (54.8) b. Sales adjusted for comparable units and currency were flat YoY.

Gross margin excluding restructuring charges improved to 38.2% (36.7%), including the earlier communicated inventory write-down related to Mainland China (SEK -0.9 b., which equals to -1.6 percentage points).           

Operating income excluding restructuring charges improved to SEK 4.5 b. (8.2% operating margin) from SEK 3.9 b. (7.0% operating margin) driven by improvements in segment Digital Services.            

Networks sales increased by 4% YoY. Networks operating margin excluding restructuring charges  was 14.1% (15.0%) impacted by strategic contracts and the inventory write-down, partly compensated by operational leverage and a favorable business mix.            

Digital Services operating income excluding restructuring charges was SEK -0.7 (-1.3) b. Gross margin improved driven mainly by higher software sales while sales declined by -5%.            

Net income was SEK 2.6 (1.8) b. Free cash flow before M&A was SEK 3.2 (1.6) b. Net cash June 30, 2020, was SEK 37.5 (33.8) b.           

The Covid-19 pandemic had a limited impact on operating income and cash flow in the quarter.

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