By Dominic Chopping


STOCKHOLM--Ericsson AB said Wednesday that its fourth-quarter earnings will be weighed by costs related to a reshuffle of its cloud software and services business.

The Swedish telecommunications-equipment company presented in December a turnaround strategy for the loss-making unit, targeting break-even on the earnings before interest and tax as well as earnings before interest, tax, depreciation and amortisation level by the end of 2023.

As part of the turnaround, Ericsson said it has decided to exit certain contracts and product offerings, leading to a one-off negative impact on Ebit of 800 million Swedish kronor ($75.7 million) in the fourth quarter of 2022, of which SEK700 million is expected to impact cash flow, mainly in 2023.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

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