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Ericsson's Chief Executive, Carl-Henric Svanberg

Ericsson and Volvo profits lower than expected

Swedish mobile phone giant Ericsson says it made a net profit last year of 3.8 billion US dollars, up 8.2 per cent on the previous year.

The Stockholm-based company, which is the world’s largest mobile manufacturer, says it was boosted by strong sales and the recent integration of British firm Marconi.

Ericsson says the company is well positioned for 2007 and says costs have risen more slowly than sales. But it has revised downwards its forecast for the year, prediciting a growth of between 4 and 6 per cent in its main market, third generation mobile phone networks, down from the 5 to 9 per cent previously announced.

Meanwhile bus and truck maker Volvo says record sales led to its net profit jumping up 24.5 per cent last year to 2.4 billion.

The Chief Executive of the Gothenburg-based firm says it was the best year in their history, in terms of sales and earnings, and it was partly thanks to strong progress in eastern Europe, despite lower demand in the north American heavy lorry market.

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