Ericsson raises dividend 50% as profits improve, margins on track

Ericsson announced a 50 percent increase in its dividend to SEK 1.50 per share, after reporting full-year results it says are on track to meet its medium and long-term targets. For the fourth quarter, the company posted sales up 4 percent to SEK 66.4 billion, and the adjusted operating margin more than doubled to 9.7 percent, close to its target of 10 percent for 2020.

Adjusted for comparable scope and currency effects, quarterly sales rose 1 percent and annual sales were up 4 percent.

Ericsson said a reduction in North America in Q4 due to uncertainty over the T-Mobile merger with Sprint was compensated by growth in other markets, primarily in the Middle East and North East Asia. The main Networks business posted an adjusted gross margin of 41.1 percent, similar to 41.0 percent a year ago, while the adjusted operating margin fell to 14.5 percent from 17.5 percent.