Ericsson loss prompts shares issue
Ericsson (Nasdaq: ERICY) has announced a Q2 loss of SEK €2.7 bn.
They have also warned that they will be implementing measures to cut costs by around SEK €10bn.
They hope to raise an additional SEK €30bn by issuing new shares.
The company says its outlook for the rest of the year is quite bleak and it expects industry sales to drop by more than 15%.
However, they hope to make a profit by 2003.
Ericsson warned earlier this year that no improvement was imminent and it cut 150 jobs in its Irish operations.
Ericsson is however optimistic about its prospects in the medium term as it hopes for the massive roll out of 3G telephony by 2005.
