" ITREALMS: Ericsson says Japan earthquake’ll not affect sales

Wednesday, March 23, 2011

Ericsson says Japan earthquake’ll not affect sales

Leading provider of technology and services to telecom operators, Ericsson has said that the recent earthquake in Japan would not affect its sales in the first quarter.

Media and Public Relations, Ericsson West Africa, Ms Omasan Ogisi, who hinted this, said that focus now is on supporting customers in securing functionality of vital telecommunication services.

She noted that Japan is a large supplier to the global market for semiconductors and other components and it is reasonable to expect an effect on supply, yet it’s too early to say to what extent.

The situation in Japan, she said, is not expected to have material impact on Ericsson’s first quarter (Q1) 2011 sales.

She pointed out that Ericsson extends its condolences to the Japanese people in this tragic situation and remains fully committed to supporting all the customers in any way possible in securing that the vital mobile networks are functioning satisfactorily.

Ericsson, she said, has to date no reports of injured or missing employees, stressing that the situation in Japan is still developing and focus of Japanese authorities is on saving lives and supporting affected areas.

“At the same time, Ericsson is analyzing the broader effects on the telecommunications industry and Ericsson’s business,” she said.

The telecommunications industry as well as many other industries, Ogisi said, is reasonable to expect that the events in Japan would affect supply of components.

She emphasised that business continuity plans and work to assess the impact on Ericsson and mitigation activities has been ongoing since Friday March 11.

“Typically such activities include supply and sourcing activities such as spot market purchases, redirecting orders to alternative suppliers and tight collaboration with our Japanese supplier base,” she said.

Ogisi maintained that although it is too early to get an accurate picture of how Japanese enterprises are affected, and how this affects Ericsson and the industry, no material impact on Ericsson’s sales are expected for Q1 2011.

“We will continue to closely monitor the situation in Japan to take further action where necessary. It is however too early to draw any further conclusions before we fully can assess the situation,” she submitted.

Remmy Nweke:
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