Ericsson aims for margin jump beyond 2022 as it sets new targets
Reuters
Published Nov 09, 2020 21:51
Updated Nov 09, 2020 22:05
STOCKHOLM (Reuters) - Sweden's Ericsson (ST:ERICb) is targeting an operating margin excluding restructuring charges of between 15% and 18% beyond 2022, it said ahead of Tuesday's capital markets day.
"Growth as well as gross margin improvements, driven by software sales and operational leverage, will be the cornerstones in reaching the long-term targets," the telecoms gear maker said in a statement https://www.ericsson.com/en/press-releases/2020/11/ericsson-capital-markets-day-2020.
The company, which maintained its 2022 operating margin of 12-14%, excluding charges, boosted its margin forecast from its networks business as telecom operators across the world upgrade to next-generation 5G technology.
The 2022 operating margin target for Networks was raised to 16-18% from 15-17%. On the flip side, it reduced its margin target for its digital services business to 4-7% from 10-12% in 2022.
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Written By: Reuters
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