Sometimes a 70 percent drop is a good thing – like in designer shoe prices or the amount of calories in a Cinnabon roll. But a 70 percent drop isn’t a good thing if we’re talking profits, and that’s indeed the case for telecom equipment maker Ericsson (ERIC). The Sweden-based company joined the second-quarter earnings reporting fray today and, well, let’s just say its stocks and 2008 immediate future aren’t looking pretty. Of course, as CEOs are wont to do, Ericsson’s said the corporation has a positive longer-term outlook. Let’s hope he’s right or he might end up selling those Cinnabons and designer shoes.
TheStreet: Ericsson Profit Plunges 70%, Weighing on Sector
Forbes: Ericsson Plays the Waiting Game
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