Yesterday, Ericsson released the fourth quarter 2012 financial report and the annual financial report. Since Huawei ’s CFO Meng Wanzhou had previously unveiled Huawei ’s 2012 revenue and profit forecast, the announcement of Ericsson ’s earnings report is quite meaningful.
The financial report shows that although Huawei's revenue and Ericsson are very close, Ericsson's revenue is still the largest. Due to the drag of the subsidiary's write-down, Ericsson suffered a loss in the fourth quarter, and its net profit declined throughout the year. In 2012, Huawei's profits exceeded Ericsson's.
Subsidiary dragged profits down sharply
The financial report shows that Ericsson's 2012 revenue was 227.8 billion Swedish kronor (about 35.8 billion US dollars), which was the same as last year's revenue. Net profit was SEK 5.9 billion (approximately USD 930 million), down 53.2% from SEK 12.6 billion (approximately USD 1.98 billion) in the previous year.
Among them, the fourth quarter revenue was 66.9 billion SEK (about 10.53 billion US dollars), an increase of 5% year-on-year, a loss of 6.3 billion SEK (about 990 million US dollars), and a net profit of 1.5 billion SEK (about (US $ 236 million). Ericsson said that the company ’s sharp loss in the fourth quarter was mainly due to the inclusion of a one-time SEK 8 billion SEK expenditure in ST-Ericsson ’s financial report.
In 2012, all communication equipment manufacturers suffered from a cold winter, and Ericsson's profitability as a leader was also affected. Ericsson said that this was mainly affected by the joint venture ST-Ericsson operating losses, the ongoing network modernization projects in Europe, and the network portfolio projects that have more network coverage projects than expansion projects. Ericsson expects that the company's related business portfolio is expected to gradually shift to more expansion projects in the second half of 2013.
Wireless network revenue decline
In 2012, Ericsson established three major business directions for the wireless network, service and support solutions business unit. At that time, Ericsson CEO Wei Hansi said, "We hope to be the first of three. Now we are the first in mobile broadband and the first in telecommunications services. We hope to become an operation support system / business support system (OSS / BSS) in the future. First."
One year later, in terms of specific business directions, in 2012, the net sales from the network business department was 117.3 billion SEK, down 11% year-on-year; the net sales from the Global Services Department was 97 billion SEK, up 16% year-on-year ; Net sales from the Support Solutions business unit was 13.5 billion SEK, a year-on-year increase of 26%.
Ericsson explained that the reason for the decline in network business sales in 2012 was partly due to a 40% decline in CDMA equipment sales.
At the same time, the support solutions business turned from a loss in 2011 to a profit, and together with the global service business accounted for 50% of the group's sales in 2012, compared with 42% in 2011.
Huawei net profit surpasses Ericsson
Despite the cold winter, Huawei's net profit fell once, but it still produced a good answer. The financial report given by Meng Wanzhou is expected to have a total annual revenue of 220.2 billion yuan (about 35.36 billion US dollars) and a net profit of 15.4 billion yuan (about 2.48 billion US dollars).
Obviously, the gap between Huawei's revenue and Ericsson's is less than 400 million US dollars. It seems that it is only one step away from catching up with Ericsson, and the net profit greatly surpasses Ericsson.
However, as Huawei's overall revenue already has consumer business (terminal) and enterprise network business, but Ericsson's terminal business has been divested. If only wireless network revenue is compared, Huawei's wireless business revenue is 160.3 billion yuan (about 257.6 billion yuan) 100 million US dollars), Ericsson wireless network revenue was 214.3 billion Swedish kronor (about 33.69 billion US dollars). Ericsson is still the leader in the wireless equipment industry.
Judging from the financial data of the past 4 years, Ericsson's revenue has been stronger than that of Huawei, but the gap between them is narrowing. Huawei's profitability and growth rate is stronger than Ericsson.
2013 or will face difficult choices
"Improving profitability, cutting costs and reducing working capital are still our priorities in 2013." Wei Hansi said.
From the current point of view, Ericsson still has to make many difficult choices in 2013.
One is the joint venture ST-Ericsson. The company's 2012 annual revenue was 8.49 billion US dollars, a year-on-year decrease of 12.8%. The net loss was US $ 1.16 billion. STMicroelectronics, one of the parent companies, has issued a statement on January 30, stating that the company ’s net loss in the fourth quarter of 2012 expanded from US $ 11 million to US $ 428 million, and is preparing to exit the joint venture.
Because the company may need 500 million US dollars of capital for reorganization this year, Ericsson, already suffering from operating losses, may make new choices, or sell, or close the company, these strategic options are possible.
On the other hand, layoffs and reducing operating costs will continue. In November last year, Ericsson had laid off 1,550 employees in Sweden to increase the company's profits. At the time, the official caliber of Ericsson retained the possibility of continuing to lay off staff and reduce costs. Obviously, these measures will continue in 2013.
In particular, Nokia Siemens Networks has achieved a profit through the strategic reorganization, global layoffs of 17,000 people, the sale of business, and the closure of multiple office spaces. Such a move also has reference value for Ericsson.
Sports can't be abandoned more freely
Close ergonomic design, close to the ear, even wearing for a long time can also enjoy comfortable experience.
And can form a triangular stable support with the ear, even if running and riding, vigorous fitness is still close to the ears, wildly shake off.
Description of connection OK
music doesn't wait
After the first successful pairing, the boot automatically back up, no unnecessary operation
When the earphone is turned on, it can be automatically reconnected.
Note: the first pairing should be done manually in the bluetooth Settings of the device only Ensure that the bluetooth function of the device is turned on normally
Noise Cancelling Earbuds,Bluetooth Earphone Price,Half In-Ear Wireless Headset,Wireless Bluetooth Earphones
Guangzhou HangDeng Tech Co. Ltd , https://www.hangdengtech.com