Ericsson profits fall in Q2

18/07/2012

Ericsson Profits Fall In Q2

The world's largest maker of mobile phone network - Ericsson - has reported profits are much lower than expected for the second quarter of the year.

Net income for the Swedish company fell 64 per cent to 1.1 billion krona (£101 million).

Analysts had expected Ericsson's profits to be around 1.64 billion krona, but this fall has been blamed on weaker economic growth.

Sales, however, grew 0.9 per cent to 55.3 billion krona, which is a small increase on the amount experts had predicted.

This comes after first-quarter results revealed that net income had doubled to 8.8 billion krona, while sales at the networks division feel by 18 per cent over the three-month period.

In a statement, chief executive of Ericsson Hans Vestberg said that lower sales in the likes of Russia and China had been partly to blame for the results.

"Demand for global services and support solutions was strong, while networks sales decreased," he said.

Posted by Claire Marshall

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