Ericsson's CEO, Hans Vestberg, is keen to praise the new report. Photo: Pontus Lundahl/Scanpix

Phone giant recovering from a bad year

4:20 min

Today one of Sweden's biggest and best known companies revealed how they've been doing during last year. It looks like 2010 has been a much better year than 2009.

In 2008 Eriksson was listed as Sweden's fourth biggest company. This telecoms giant is also regularly in the top 100 of Europe's biggest companies, and the Sony Ericsson phones are selling in their millions. But by the end of 2009 the company had actually shrunk, by a couple of billion Swedish kronor.

However, the results announced today were surprisingly good. Swedish radio news reports that the figures are higher than what, on average, analysts expected Ericsson to make.

In a soundbite released by Ericsson their CEO, Hans Westberg, says that he thinks the highlights of this report are his company's return to growth - and that this was driven by good times for their mobile broadband sector. But that fast growth means there seems to be a bottle neck, a shortage of components to deliver the products that customers now want

Martin Nilsson, analyst at Sweden's Handelsbanken, says to Radio Sweden that this may be a return to business as usual - whatever that means, since Rricsson has been growing and shrinking for some time now, and "whether they are still growing by the end of the year remains to be seen."

Nilsson also says that Ericsson may be growing, but that this doesn't necessarily mean better times for consumers or for taxpayers. "They have reported growth, but not in earnings, and it is from earnings that tax is taken."

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