The New Nation - Internet Edition

Ericsson to cut 4,000 jobs worldwide: Political unrest halts investment in Bangladesh, says Ericsson chief executive Carl-Henric Svanberg

Staff Reporter

Swedish telecommunications equipment maker Ericsson said Friday 4,000 jobs worldwide would be cut as the company reported flat sales for fourth quarter 2007 and a 37-per-cent drop in pre-tax income, according to a message received from Sweden yesterday.

Fourth-quarter sales totalled 54.5 billion kronor (8.56 billion dollars), the same as in the corresponding business quarter 2006.

Pre-tax income was 7.6 billion kronor, down from 12.2 billion kronor in fourth quarter 2006.

Ericsson expected sales in 2008 to remain flat, chief executive Carl-Henric Svanberg told analysts and reporters, adding that "market conditions" were "tougher" for its mainstay network operations.

In 2007, "they started in single digits, but ended flattish," he said, saying the job cuts were necessary to "adjust for a slower market."

Of the 4,000 job cuts, some 1,000 would impact Sweden, "as far as possible through voluntary reductions," Svanberg said, adding that the group aimed to avoid cuts in research and development.

Worldwide the group has 74,000 employees, including some 19,000 in Sweden.

Management planned cost savings of 4 billion kronor due to take full effect in 2009.

Factors attributed to the flat sales for fourth quarter 2007 were "less spending from operators on network infrastructure and a continued weakened US dollar," Ericsson said.

Svanberg also noted that political unrest in emerging markets like Thailand, Bangladesh and Pakistan had halted investments in fourth quarter 2007.

The professional services division that includes a section that manages networks and IT infrastructure for operators and multimedia increased 15 per cent in the fourth quarter.

The multimedia division was still in a build-up phase, Ericsson said.

Ericsson's share price was down 5 per cent in late morning trading.

For full year 2007, sales grew 4 per cent to 187.8 billion kronor, Ericsson said, adding that pre-tax income for 2007 dropped 15 per cent to 30.7 billion kronor.

Bangladeshi participants get huge success in Bahrain Fair

Staff Reporter

Bangladeshi companies participated in Bahrain Autumn Fair, 2008 have received spot orders and signed bilateral trade agreements with various companies.

Three Bangladeshi commercial banks, two life insurance companies and one real estate company participated in the nine-day fair held at

Manama, Bahrain on January 22-30, said a press release.

Participating Pubali Bank, Prime Bank and Mutual Trust Bank Ltd finalised remittance drawing deal with several exchange houses and banks of Bahrain. These banks have opened hundreds of accounts for expatriate Bangladeshis and collected laudable deposits.

Pubali Bank Ltd finalized deal with Zenj Exchange, Bahrain National Exchange Company, while Prime Bank Ltd finalized to sign a deal with Bahrain Finance Company, Zenj Exchange Company, Bahrain National Finance and Exchange Company, Bahrain-India International Exchange Company and Nonoo Exchange Company.

Mutual Trust Bank Ltd agreed to sign deal with ICIC Bank, Dalil Exchange Company and UAE Exchange Company.

Among the life insurance companies, Fareast Islami Life Insurance

Company Ltd earned Tk 6 million premium by selling 350 policies while Meghna Life Insurance Company Ltd earned Tk 5 million selling more than 250 policies.

The only real estate company, Mission Energy and Properties, got booking for more than 50 flats and plots.

Bangladeshi participating companies had several meetings with the companies of Bahrain.

Pubali Bank Managing Director Helal Ahmed Chowdhury, Mutual Trust Bank Managing Director Kazi Shafiqur Rahman, Prime Bank Vice-President Sk Matiur Rahman, Meghna Life Insurance Ltd Chairman Nizam Uddin Ahmed, Fareast Islami Life Insurance Executive Vice President Matiur Rahman Sikder, Mission Energy and Properties Director Bazlur Rahman and Dhaka International Exhibition Company Managing Director Enayet Karim attended the meeting, while Charge d' Affaires of Bangladesh Embassy in Bahrain Saiful Islam and First Secretary (Labour) Shamim Al Mamun were present.

During the meeting, Bahraini businessmen showed keen interest to import Bangladeshi rice, readymade garments, shrimp, medicine, handicrafts, spices and food products.

They also expressed their interest in investment in Bangladeshi textile, bank and capital market.

Kuliarchar Group opts for GP Business Solutions

Grameenphone Ltd. recently signed an agreement with the Kuliarchar Group to provide complete communication facilities under its Business Solutions package.

Grameenphone Business Solutions is an integrated telecommunications service specially designed for the business entities of Bangladesh, providing customised telecommunications solutions through a consultative approach, tailored to the needs of individual businesses.

Kuliarchar Group was established in 1984. With the start of Kuliarchar Cold Storage Limited, the Group implemented the best available processing technology in the world and established "JC" as a premium brand in the world seafood market.

Grameenphone Business Solutions, comprising of modern mobile telecommunications services for any business needs, provides voice, text messaging and mobile data and internet services. Also on offer is a complete Mobile-Office solution, including mobile email, mobile high-speed data access, internet access, mobile fax and more, providing the freedom to work from anywhere within Grameenphone's wide network coverage.

According to the agreement, the Kuliarchar Group is being provided complete communications solutions tailored to its needs, including voice, data and other services. Kuliarchar Group will use the services to further improve communication amongst its different businesses, at an affordable cost.

The agreement was signed by Md. Musa Meah, Chairman & Managing Director of Kuliarchar Group and Sajjad Alam, Head of Dhaka Region, Commercial Division of Grameenphone, on behalf of their respective organizations.

Mujibur Rahman - Director, Anjan Kumar Saha - General Manager, Kuliarchar Group and Khandaker Omar Farhan, Deputy General Manager, Sales Division, Choudhury Shahriar Noor, Group Manager, Md. Imtiaz Hossain, Account Manager, Md. Rajib Khan, Account Manager, and Md. Sazzad Hossain, Relationship Manager, Sales, Grameenphone, were present in the signing ceremony.