Ericsson shares rise on better than expected results
25-04-2008
Shares in Ericsson climbed 25 per cent after the network supplier reported better than expected results for the first quarter.
Ericsson, which part-owns mobile handset maker Sony Ericsson with Sony, reported a 55 per cent fall in net income for the three months as restructuring charges and lower sales hit profits.
However, analysts were expecting worse following an earlier profit warning that sales were slow in Europe. The company has lowered unit prices as a result.
A weaker dollar, making exports more costly, also negatively affected earnings.
"Our business developed well in the quarter, considering the present market environment and the declining dollar," said Carl-Henric Svanberg, president and CEO of Ericsson.
But he added: "We still find it prudent to plan for a flattish mobile infrastructure market in 2008."
Net sales were up five per cent to SEK44.2 billion, from SEK42.2 billion compared to last year, while net income slipped to SEK2.6 billion from SEK5.8 billion last year.
Emerging market demand helped offset the decline in the western European market, the company said.
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