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Ericsson Reports Fourth Quarter And Full Year Results 2013

Stocks in this article: ERIC

STOCKHOLM, Sweden, Jan. 30, 2014 (GLOBE NEWSWIRE) -- Fourth quarter highlights

  • Sales of SEK 67.0 b., flat YoY.
  • Sales for comparable units and adjusted for FX, increased 4% YoY.
  • Operating income incl. JV of SEK 9.1 (-3.8) b. with operating margin of 13.5% (-5.7%), including a one-time charge of SEK -0.4 b. related to the acquisition of Airvana
  • Net income SEK 6.4 (-6.3) b.
  • Successfully closed an IPR cross license agreement with Samsung on FRAND terms. Impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b. included in all numbers.
  • EPS diluted SEK 1.97 (-1.99). EPS Non-IFRS SEK 2.42 (-1.40).
  • Cash flow from operating activities of SEK 14.6 (15.7) b.
  • Segment Modems was consolidated as of October 1, 2013

Full year highlights

  • Sales of SEK 227.4 b., flat YoY.
  • Sales for comparable units and adjusted for FX, up 5% YoY.
  • Operating income incl. JV was SEK 17.8 (10.5) b. with an operating margin of 7.8% (4.6%).
  • Net income SEK 12.2 (5.9) b.
  • All numbers include effects of the IPR cross license agreement with Samsung with impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b.
  • EPS diluted SEK 3.69 (1.78). EPS Non-IFRS SEK 5.62 (3.55).
  • Cash flow from operating activities of SEK 17.4 (22.0) b.
  • Proposed dividend for 2013 of SEK 3.00 (2.75) per share.

SEK b. Q4 2013 Q4 2012   YoY Change Q3 2013 QoQ Change Full year 2013 Full year 2012 2) Full year Change
Net sales 67.0 66.9 0% 53.0 27% 227.4 227.8 0%
     Of which Networks 34.8 35.3 -1% 26.7 30% 117.7 117.3 0%
     Of which Global Services 27.2 28.0 -3% 24.0 13% 97.4 97.0 0%
     Of which Support Solutions 5.1 3.6 41% 2.4 117% 12.2 13.5 -9%
     Of which Modems 0.0 - - - - 0.0 - -
Gross margin 37.1% 31.1% - 32.0% - 33.6% 31.6% -
Operating income excl JV 9.1 4.8 90% 4.3 112% 18.0 22.2 -19%
Operating margin excl JV 13.5% 7.1% - 8.1% - 7.9% 9.7% -
     Networks 17% 8% - 10% - 10% 6% -
     Global Services 8% 6% - 8% - 6% 6% -
     Support Solutions 37% 8% - -5% - 12% 9% -
Operating income incl JV 9.1 -3.8 3) - 4.2 115% 17.8 10.5 3) 71%
Operating margin incl JV 13.5% -5.7% - 8.0% - 7.8% 4.6% -
Net income 6.4 -6.3 3) - 3.0 114% 12.2 5.9 3) 105%
EPS diluted, SEK 1.97 -1.99 - 0.90 119% 3.69 1.78 107%
EPS (Non-IFRS), SEK 1) 2.42 -1.40 - 1.31 85% 5.62 3.55 58%
Cash flow from operating activities 14.6 15.7 -7% 1.5 - 17.4 22.0 -21%
Net cash, end of period 37.8 38.5 -2% 24.7 53% 37.8 38.5 -2%
1)  EPS, diluted, excl. restructuring, amortizations and write-downs of acquired intangible assets 2)  Including gain from divestment of Sony Ericsson of SEK 7.7 b 3)  Including a charge related to ST-Ericsson of SEK -8.0 b

Comments from Hans Vestberg, President and CEO

"Ericsson's sales for comparable units, adjusted for FX, grew 5% for the full year. I am pleased that we have successfully closed the IPR cross-licensing agreement with Samsung. Our industry is built on scale and a strong tradition of sharing technologies through licensing on fair, reasonable and non-discriminatory (FRAND) terms. The agreement shows the value of our R&D investments and enables both companies to continue to innovate and bring new technologies to the market," says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC).

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