Ericsson CEO Börje Ekholm described the vendor’s latest financial performance as “unsatisfactory” as it saw sales and profits tumble.

The Sweden-based company made a net loss of SEK10.9 billion in the first three months of 2017, versus a profit of SEK2.1 billion 12 months ago.

Operating losses stood at SEK12.3 billion versus an operating profit of SEK3.5 billion last year.

As trailed last month, over SEK13 billion worth of writedowns and restructuring charges were included in the latest results as Ekholm looks to implement a turnaround plan.

Revenues fell 11 percent in Q1 to SEK46.4 billion as it registered declines across all of its business units.

The company said its principal networks division delivered solid results despite seeing sales fall 13 percent.

However, Ekholm described the performance of the IT & Cloud business – one of the key platforms for the CEO’s turnaround plan – as both “concerning” and “not acceptable”.

Sales fell three percent year-on-year to SEK9.5 billion but slumped 36 percent versus the last three months of 2016.

The division’s operating loss widened from SEK2 billion to SEK9 billion year-on-year.

Citing a range of initiatives including accelerating the introduction of new products, Ekholm said: “The new management team is initiating actions to turn the business around.”

Revenues at Ericsson’s media arm fell 20 percent to SEK2 billion during the period due to a “faster than anticipated decline in legacy product sales”.

The company continues to look offload the division as part of Ekholm’s new strategy.

Ekholm said: “Our performance in the first quarter continued to be unsatisfactory.

“The immediate priority is to improve profitability while also taking action to revitalise technology and market leadership.”

He added: “We are not satisfied with the cost structure of the company and the existing cost and efficiency program is not yielding sufficient results.

“Based on current profitability, we will intensify our efforts to reduce cost with focus on structural changes to generate lasting efficiency gains and increase cost competitiveness.

“Our target is to surpass previous ambitions.”

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