Ericsson Buys Marconi
The British telecoms equipment maker Marconi has agreed to sell most of its assets and its name to Sweden’s Ericsson.
Under the 2 billion dollar deal, what is left of Marconi would be renamed Telent. The venerable company was founded by the inventor of radio, Guglielmo Marconi.
Ericsson says the deal to buy 75 percent of Marconi’s turnover will help it expand its market for converging fixed and mobile communications, such as telephony over the Internet.
In other business news, several major Swedish companies posted positive third quarter reports Tuesday.
Volvo, the world’s second-biggest truck maker, reported a record net profit of 367 million dollars, a 151 percent increase from the same period last year. Volvo says this year it expects around 5 percent growth in Europe, and 25 percent growth in North America.
Electrolux, the world’s biggest home appliances maker, posted a pre-tax profit during the third quarter of just over 184 million dollars, as its cost-cutting program offset higher raw material prices. Sales of major appliances in North America rose by around 13 percent.
Engineering group Alfa Laval reported third quarter operating earnings above market expectations, and said demand would remain a high levels in the near future.
While TeliaSonera, the Nordic region’s biggest telecommunications company, says its net profit slipped slightly, core earnings were still above expectations, with third quarter sales up 8.5 percent.