Ericsson is planning a rights issue to help improve its finances following the announcement of a $525 million Q1 lost. Infrastructure orders declined from last year, but a 11% increase was seen over the last quarter, which could signal the start of the markets recovery.
The markets in Western Europe, Japan and the majority in Latin America all remained weak. However, Ericsson did see business improve in the US, China, Sweden and in numerous emerging markets. The best news for Ericsson is that its handset joint venture with Sony broke-even in Q1, earlier than expected.
Ericsson maintains that its aim to post a profit for the full year is unchanged. The company intends to improve its financial position by launching a $2.9 billion rights issue. The capital will be used to pay off the company’s net debt position.
