Equipment vendors see margins rise (RCR Mobile Minute)

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Cost cuts and restructuring are paying off for Europe’s major wireless infrastructure vendors, all of whom saw significant margin improvement in the second quarter. Alcatel-Lucent, which has cut costs as part of its Project Shift initiative, said that second quarter selling, general and administrative expenses decreased by 13.9% compared to Q2 2013, helping boost the company’s operating margin to 4.1%.
Ericsson’s operating margins have increased for four consecutive quarters, reaching 7.3% during the second quarter of this year. The company said that the shift by many carriers to capacity projects led to higher margin sales, but that its margins were also boosted by internal initiatives.
Nokia’s Q2 operating margin in its networks business was 11% and the overall company’s operating margin was 9.7%. Nokia’s other businesses include its HERE mapping tool and its patent licensing business. Its device business has of course been sold to Microsoft.
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