Ericsson posts massive Q2 losses

'It could have been worse,' claim analysts...

Ericsson has reported huge losses in its second quarterly results but analysts welcomed the news, which was better than expected. The communications equipment company announced pre-tax losses of SKr20bn (£1.3bn) for the period ending 30 June, comparing starkly with a profit of SKr6.7bn (£442m) in the same quarter last year. Revenues plunged 39 per cent. The company also slashed sales forecasts for 2001 from 400 to 440 million handsets, down from original estimates of 430 to 480 million. According to a BBC report, the results were welcomed by analysts who had expected much worse from the manufacturer.