Ericsson to take writedowns, provisions, restructuring charges in first quarter

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Swedish telecoms equipment maker Ericsson said on Tuesday it would take provisions, write-downs and restructuring charges this year, most of it in the first quarter, and announced a new organisational structure and business focus.

Ericsson said in a statement it would write down assets in the first quarter, with an estimated impact on operating income of 3-4 billion crowns ($342-$456 million). It estimated restructuring charges would amount to 6-8 billion crowns in 2017, of which it would book 2 billion in the first quarter.

Ericsson said it would also take provisions of an estimated 7-9 billion crowns in the first quarter, related to certain large customer projects.

Ericsson said in a separate statement it had appointed Fredrik Jejdling, currently head of the Network Services division, as head of the new Networks division. It appointed Peter Laurin head of Managed Services, and Ulf Ewaldsson head of Digital Services.