STOCKHOLM, SWEDEN — (Marketwired) — 07/18/13 —

Second quarter highlights

* Sales were flat YoY at SEK 55.3 b. For comparable units and adjusted
for FX,
sales increased 7% YoY and 6% QoQ.
* Operating income incl. JV was SEK 2.5 (2.1) b. with an operating margin
of
4.5% (3.8%).
* The quarter was negatively impacted by one-time items of SEK -0.9 b.
from
losses due to divestments and exiting the telecom and power cable
operations.
* Net income was SEK 1.5 (1.2) b.
* EPS diluted was SEK 0.45 (0.34). EPS Non-IFRS was SEK 0.88 (0.78).
* Cash flow from operating activities was SEK 4.3 b.

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“Sales for comparable units, adjusted for FX, grew 7%. Reported sales were
flat
YoY, due to continued currency headwind,” said Hans Vestberg, President and
CEO
of Ericsson (NASDAQ: ERIC).

“There was continued high project activity in Europe as well as in North
America
where two large mobile broadband coverage projects have peaked in first
half
2013. North East Asia had another challenging quarter following continued
structural decline in GSM investments in China, FX in Japan and lower
business
activity in South Korea due to spectrum delays.

The business mix, with a higher share of coverage projects than capacity
projects, started to shift slightly towards more capacity during the
quarter.

We implemented our strategy to capture new market share in the network
modernization projects in Europe starting in 2010, despite their initial
lower
margins. Now that these projects gradually come to an end, we can conclude
that
we have been successful in gaining market share and regained leadership in
Europe. It is also encouraging to see that we are now starting to engage in
new
business, based on this footprint, regarding capacity and LTE projects in
Europe.

We continue to strengthen our leading position in 4G/LTE. The vendor
selection
processes for 4G/LTE in Russia and China continue and to date we have been
awarded contracts by two large operators in Russia.

During the quarter we also reached one billion subscribers in networks
managed
by Ericsson. This clearly shows the confidence our customers have in our
ability
to create value for them.

Profitability improved YoY, adjusted for one-time effects related to
exiting the
telecom and power cable operations and the divestment of Applied
Communication
Sciences (ACS). The improvement was driven by higher gross margins and
lower
operating expenses. This was partly offset by currency headwind.

With the announcement in April and July of the intended acquisitions of
Microsoft-s Mediaroom and Red Bee Media, we continue to strengthen our
position
in TV and media. As TV and media converge with telecom we can leverage our
strength in media management and managed services. Video is already the
single
largest contributor to traffic in mobile networks and is expected to grow
by
60% annually until 2018.

While the macroeconomic situation in Europe remains challenging and the
political uncertainty in parts of Region Middle East, such as Egypt,
increases,
the long-term fundamentals in the industry remain attractive and we are
well
positioned to continue to support our customers in a transforming ICT
market,”
concludes Vestberg.

NOTES TO EDITORS

You find the complete report with tables in the attached PDF or by
following
this link:
or go
to:

Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
July 18, 2013. An
analysts, investors and media conference call will begin at 15.00 (CET).

Live webcast of the press conference and conference call as well as
supporting
slides will be available at and

Video material will be published during the day on

Ericsson discloses the information provided herein pursuant to the
Securities
Markets Act. The information was submitted for publication at 07.30 CET, on
July
18, 2013.

Ericsson second quarter report 2013:

This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE
[HUG#1717283]

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