Stockholm - Swedish telecommunications company Ericsson posted
a fourth quarter net loss of 1.6 billion kronor ($181 million)
on Thursday.
Lower licensing revenues for intellectual property rights following a
deal with US technology giant Apple as well as higher restructuring
costs weighed on results.
Ericsson reported a profit of 7 billion kronor in the corresponding
business period a year ago.
The company said year-on-year sales in the quarter declined 11 per
cent to 65.2 billion kronor.
"The negative industry trends remained in the fourth quarter," new
chief executive Borje Ekholm said in a statement.
Ekholm, a veteran board member who took the helm on January 16, also
noted that full-year restructuring costs were 7.6 billion kronor,
compared to earlier estimates of between 5.5 billion kroner and 6.5
billion kronor.
Read also: Moody's cuts Ericsson's rating
The board proposed slashing the dividend from 3.70 kronor per share
to 1 krona per share to "align the dividend level with 2016
earnings."
The Ericsson share, however, rose about 6 per cent in early trading
on the Stockholm bourse.