Despite reporting larger than expected losses and warning of a fall in mobile sales, shares in Ericsson rose nine per cent this morning on the back of news that the company would be hitting a positive cash flow.
The Swedish firm said that Lars Ramqvist would be stepping down as chairman next year and that it had achieved a positive cash flow of £80m, allaying fears that the company would have to issue new shares.
Although Ericsson reported third-quarter losses of £379m, and said that the market for mobile systems may fall by 10 per cent next year, fourth-quarter forecasts said that losses would be lower.
Ramqvist will be replaced by Michael Treschow, currently chief executive at Electrolux.
Ericsson chief executive Kurt Hellström said that the company's "efficiency schedule" was on track, and set to deliver £160m in savings in the third quarter and £460m for the full year.
"With this momentum, our objective is to achieve over five per cent operating margin for the full year 2002," he said.
Yeah, sorry about all that, simpers Zuckerberg
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