Ericsson CFO Quits

Telecomms technology giant Ericsson has today lost its chief financial officer amidst poor performance over the third quarter which saw profit figures fall by over one third, in a move that will likely cause further disruption to the Swedish business.

Chief Financial Officer Karl-Henrik Sundstrom has today announced his resignation, shortly after the company posted some of its weakest results in recent memory. The company, the world’s largest manufacturer of global mobile phone handsets, had been enjoying significant growth particularly in emerging economies prior to its shock profit warnings which saw share prices fall substantially as a result.

The third quarter figures reflected previous warnings from the company that results would be poorer than previous, with both sales and cash flow reports highlighting areas for concern for the group.

Net profits for the period had fallen to just under £300 million with sales marginally up on previous periods, reflecting a loss of cost centre efficiency, as a result of changing market dynamics.

The company has today said that the poor performance comes as a result of erroneous decision making in relation to network uprgrades, which it had hoped would be more significant than they had been for the period.

Sundstrom was under pressure from within the company to resign his post in wake of the results, as a symbolic course of action following the poor performance as demanded by officials and management of the group.

The company will now look to rebuild profitability in existing market sectors, with a view to leveraging growth in emerging markets on the Asian continent.

Sundstrom will be succeeded internally by Hans Vestberg, 42, of Ericsson’s global services division. Vestberg has a 16 year track record with the company, holding posts in North America and Mexico with financial responsibilities.

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