STOCKHOLM, SWEDEN--(Marketwire - Dec 20, 2012) -
* Decision to not acquire full majority of ST-Ericsson.
* Non-cash charge of approximately SEK 8 b. in Q4, 2012 related to its50% stake in ST-Ericsson, including approximately SEK 3 b. cash out ofwhich the majority in 2013.
The charge includes write down of assets to reflect the current bestestimate ofEricsson's share of the fair market value of the JV, as well as additionalcharges related to the available strategic options for the future of theST-Ericsson assets.
ST-Ericsson announced its strategic plan in April 2012 and is in the middleofexecuting on company transformation aiming at lowering its break-even pointandintroducing new technologies. On October 9, 2012, the two parent companiesannounced a strategic review of the business plan and the future ownershipstructure. On December 10, 2012, STMicroelectronics (
Ericsson continues to believe that the modem technology, which itoriginallycontributed to the JV, has a strategic value for the wireless industry. ForEricsson, a key priority in this process is a successful marketintroduction ofthe new LTE modems which Ericsson is certain will be very competitive andneededin the market.
Ericsson will continue to explore various strategic options for the futureofST-Ericsson assets. To acquire the full majority of ST-Ericsson is,however, notan option. Ericsson's current best estimate is that the implementation ofthestrategic options at hand will require approximately SEK 3 b. of Ericssonfunding, of which the majority in 2013.
Ericsson will provide any additional financial information in conjunctionwiththe Q4 report 2012.
During the process of exploring options Ericsson will not speculate on thepossible outcomes, timelines, and future strategic alternatives for ST-Ericssonassets.
Conference call for analysts, investors and media
Ericsson invites media, investors and analysts to a conference call withPresident and CEO Hans Vestberg and Jan Frykhammar, CFO, at 14.00 (CET) onDecember 20, 2012.
A replay of the conference call will be available after the scheduled endtime.The playback will be available from approx. 16.30 CET on December 20, 2012,until 23.59 CET on December 27, 2012.
Dial in number:
Sweden number: +46 850 520 270
International number: +44 208 817 9301
US number: +1 718 354 12 26
Confirmation code: 9624 162# password: Tulip
Sweden replay number: +46 8 505 202 94
International replay number: +44 20 776 964 25
Replay pass code: 9624 162#
Ericsson discloses the information provided herein pursuant to theSecuritiesMarkets Act and/or the Financial Instruments Trading Act. The informationwassubmitted for publication on December 20, 2012 at 08.30 CET.
Ericsson's Q4 results negatively impacted by non-cash charge:http://hugin.info/1061/R/1666557/540889.pdf
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Source: Ericsson via Thomson Reuters ONE
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