Ericsson profits not as high as expected
Swedish telecommunications company Ericsson has announced quarterly profits of some US$962 million, an increase on the same period last year, but below analysts’ expectations.
Ericsson shares fell on the Stockholm exchange as their sales performance for the April - June quarter fell short of market predictions.
Ericsson said its net profit in the April-June period rose 12.3%compared with the same quarter last year. Sales went up 8.2%. Ericsson chief executive Carl-Henric Svanberg described the quarterly results as ”encouraging.”
The news comes two days after Ericsson announced its largest ever deal, to expand Indian company Bharti Airtel’s phone network. The contract is worth some US$2 billion.