Ericsson shares fell 4 per cent on Thursday after the Swedish telecoms equipment maker warned that restructuring a troubled division would cost about $850m.
The company said that operating profit in the fourth quarter would be hurt by SKr6.1bn ($700m) in provisions in its lossmaking business support systems unit.
Restructuring the unit which provides digital services to telecoms operators accounts for SKr3.1bn of the provisions, and is likely to lead to SKr1.5bn in extra charges this year as Ericsson cuts jobs.
Ericsson and its Finnish rival Nokia are jostling for position against Chinas Huawei as telecoms operators worldwide decide when to launch the next generation of networks, known as 5G, which offers the prospects of faster spee…
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