Ericsson names CFO in time for management shuffle - Mobile World Live

Ericsson names CFO in time for management shuffle

26 OCT 2009

Ericsson has named Jan Frykhammar as its new CFO, replacing Hans Vestberg, who is to become the Swedish vendor’s new CEO on 1 January 2010. Frykhammar (pictured), currently head of Global Services, the company’s network-maintenance unit, will take up the CFO role from 1 November. An internal CFO promotion was widely expected as Ericsson has not brought in a CFO from outside the company since 1985. Frykhammar, 44, has been with the Swedish vendor since 1991 and will remain as head of Global Services until a successor is found. As reported in June, current CFO Vestberg is taking the top job from Carl-Henric Svanberg, due to leave Ericsson and assume the role of Chairman of BP from 1 January next year.

Analysts believe the appointment of Frykhammar as a ‘steady pair of hands’ makes sense at a time when a tough market environment is catching up with Ericsson. “It’s the safe choice,” Hakan Wranne, analyst at Swedbank, told Reuters. “This is a long-timer in the company. Frykhammar is the name one has heard mentioned most often in speculations.” Last week Ericsson reported a huge 71 percent drop in net income (to SEK810 million/US$118 million). Sales came in at SEK46.4 billion, a 6 percent slip on revenue of SEK49.2 billion in the year-ago quarter. Both revenue and profit fell short of analyst forecasts by a long way. 
 

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