BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Thursday, 6 February, 2003, 19:33 GMT
Ericsson investors applaud new chief
Carl-Henric Svanberg (left) join hands with Michael Treschow (middle) and Kurt Hellstrom (right)
Carl-Henric Svanberg (L) is taking over from Kurt Hellstrom (R)
Shares in Ericsson, the Swedish firm that makes mobile network technology, have jumped after the firm unveiled a new chief executive.

Carl-Henric Svanberg, currently head of the lock making company Assa Abloy, will take over in April when the present chief Kurt Hellstrom retires.

Like many of its rivals, Ericsson has been hit by falling demand for telecoms equipment and is currently in the middle of a big cost-cutting exercise.

On Monday, it said it had made a pre-tax loss of 2.2bn kronor (157m; $257m) during the last three months of 2002.

Sales were down by 23% during the quarter, and by 36% for the year as a whole.

Respected

Ericsson's shares jumped by as much as 16% on Thursday following news of Mr Svanberg's appointment, but settled back to close up 4.2%.

"It is positive for Ericsson and the market that the issue (of succession) is solved," said Marianne Nilsson, fund manager at Sweden's biggest fund, Robur, which has 3.3% of Ericsson voting rights.

"Our view is that Svanberg is a person with good management skills, well-known and with international experience."

Mr Svanberg will have to oversee Ericsson's cost-cutting programme which aims to reduce the company's headcount to below 60,000 by the end of this year.

Ericsson employed about 64,000 people at the end of 2002.

 WATCH/LISTEN
 ON THIS STORY
Mats Nystrom, Enskilda stockbrokers, Stockholm
"He has no telecoms experience but he has excellent management skills & was Swedish leader of the year 1998"
See also:

03 Feb 03 | Business
23 Jan 03 | Business
18 Oct 02 | Business
18 Oct 02 | Business
17 Oct 02 | Business
16 Oct 02 | Business
30 Aug 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


 E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes