Ericsson makes $1.2 billion provision to settle U.S. probes, flags third quarter hit

NEW DELHI: Mobile telecom gear maker Ericsson said on Thursday its third-quarter results will be hit by a 12 billion Swedish krona (996 million pounds) provision it was making for U.S. investigations.

The investigations, by the U.S. Securities and Exchange Commission and the Department of Justice, are linked to the company’s compliance with the U.S. Foreign Corrupt Practices Act (FCPA), Ericsson said in a statement.

The Swedish company said it estimated a monetary sanction of $1 billion, along with additional related costs, to settle the investigations.