Ericsson Stock Sinks on Warning US Tariffs Would Significantly Hurt Business | Global News Avenue

American Deposit Receipt (ADRS) Ericsson (Eric) on Friday, when the telecom equipment maker missed profit estimates and warned that potential tariffs from the Trump administration could significantly impact its future results.

The company explained in its fourth-quarter earnings report: “The incoming U.S. government has indicated that it intends to impose multiple import tariffs on U.S. imports, which could have significant negative impacts across the information and telecommunications industries, international product development, and international product development.” Global Value and Supply Chains.”

Ericsson also said that, along with the United States, there was uncertainty about future bilateral trading relationships between China and a number of countries, including Sweden.

The company released its fourth-quarter Earnings per share (EPS) At 1.44 Swedish Kronor ($0.13) was well below the 2.07 Sek ($0.19) that analysts surveyed by Visible Alpha had expected. Revenue rose 1% year over year to SEK 7.91 billion ($6.68 billion), mostly in line with forecasts.

Sales surge in North America, slump in Asia

Sales in North America surged 53% to 22 billion seconds on contract wins, network investments from some large customers, strong year-end software demand and the timing of project deliverables. Sales increased by 1% in Europe and Latin America, but declined in Southeast Asia, Oceania and India (-28%), Northeast Asia (-22%) and the Middle East and Africa (-19%).

Expenses increased by $13.9 billion R&D (research and development) and SEK 10 billion sales and administration.

Despite today’s decline, Ericsson ADR grew by about 40% last year.