Ericsson CFO says rights issue is not on the cards

Loss-making mobile telecom equipment maker Ericsson said it would not need fresh capital to see it through a restructuring process aimed at cutting costs by 10 billion Swedish crowns ($1.2 billion) and doubling profitability.

“It is not on the cards at all,” Ericsson CFO Carl Mellander said. “Our cash flow is a strong point in the result today and we feel that we have a balance sheet that can cope with the execution of this strategy.”