EMEA helps boost vendor results

“Our focus on profitable growth through intensified customer partnerships and operational excellence is successful and is giving us a distinct competitive advantage,” comments Carl-Henric Svanberg, president and CEO of Ericsson.

  • E-Mail
By  Tawanda Chihota Published  April 22, 2005

Three leading telecoms infrastructure and handset vendors have reported 1Q results ahead of analysts’ expectations and which give an impression that the industry has finally recovered from the crash experienced in the late 90s. Ericsson recorded net income for the three months to end-March of SKr4.6 billion (US$656 million), up from SKr2.6 billion a year earlier. Net sales for the period increased 12% year on year from SKr28.1 billion in 1Q04, to SKr31.5 billion in 1Q05, with sales from the Central Europe, Middle East and Africa region growing 20% year on year with particularly good development in Africa, Turkey and Ukraine. “Our focus on profitable growth through intensified customer partnerships and operational excellence is successful and is giving us a distinct competitive advantage,” comments Carl-Henric Svanberg, president and CEO of Ericsson. Nokia, the world’s largest handset manufacturer reported total net sales for 1Q05 rose 17% to Eur7.3 billion (US$9.5 billion) from Eur6.3 billion a year ago. The company reported net profit of Eur863 million for the three-month period, an increase of 18% from Eur729 million in 1Q04. Nokia's mobile phone, multimedia, and enterprise solutions business groups shipped a total of 53.8 million mobile device units during the quarter, representing a 20% year on year increase. Nokia said the growth in mobile phone sales was driven by demand in China, followed by Asia Pacific and EMEA. The company estimated its handset market share for 1Q05 at 32%, down from 34% in 4Q04. Nokia Networks reported a 6% increase in sales to reach Eur1.4 billion end-March, while U.S. vendor Motorola recorded total net earnings of US$692 million in the quarter to end-March, up from US$609 million in the same quarter a year earlier. Net sales increased 10% year on year to US$8.16 billion in 1Q05, exceeding the company's guidance. Sales in Motorola’s device segment were up 6% year on year to US$4.4 billion, while shipments were up 13% year on year to 28.7 million units during the quarter. Motorola estimates 17.1% global handset market share, up from 16.6% in 4Q04. Network sales increased 15% year on year to reach US$1.7 billion in 1Q05, due to strong performance in North America and EMEA. Motorola said network sales were bolstered by strong sales of push to talk networks, which now total 27 in 31 countries, and an EDGE contract with Etihad Etisalat in Saudi Arabia.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code