Ericsson to write down 1.4b euros in fourth quarter

AFP,  STOCKHOLM: Swedish telecoms equipment maker Ericsson yesterday said it would write down 14.2 billion kronor (1.4 billion euros, $1.8 billion) in assets as the troubled company struggles to compete in a rapidly changing sector.

The writedowns, which will be booked in the fourth quarter of 2017 and which were expected, originate mainly from goodwill from "investments made 10 years ago or more, and has limited relevance for Ericsson's business going forward," the company said in a statement.

The depreciation has no impact on cash flow, it said.

Ericsson is trying to divest the two business areas mainly responsible for the writedowns, digital services and media, where the company provides services for television channels, telecom operators, content providers as well as cloud and physical devices for the Internet of Things.

 

Ericsson to write down 1.4b euros in fourth quarter

AFP, STOCKHOLM: Swedish telecoms equipment maker Ericsson yesterday said it would write down 14.2 billion kronor (1.4 billion euros, $1.8 billion) in assets as the troubled company struggles to compete in a rapidly changing sector. The writedowns, which will be booked in the fourth quarter of 2017 and which were expected, originate mainly from goodwill from investments made 10 years ago or more, and has limited relevance for Ericssons business going forward, the company said in a statement. The depreciation has no impact on cash flow, it said. Ericsson is trying to divest the two business areas mainly responsible for the writedowns, digital services and media, where the company provides services for television channels, telecom operators, content providers as well as cloud and physical devices for the Internet of Things.