Ericsson's quarterly results below expectations
Ericsson, the world leader in mobile network equipment, reported second-quarter results below analysts' expectations, the Swedish group, suggesting a difficult market including the continued reluctance of operators to invest.
The telecom equipment market begins to show signs of life but the level of customer spending is still very far from what it was before the crisis.
Ericsson, which has made tens of billions of crowns in savings to cope with falling demand, said that reducing costs would continue to be his priority as business conditions remain difficult.
In the second quarter, operating profit excluding joint ventures and excluding restructuring charges, stood at 5.3 billion kronor (564 million euros) against 6.1 billion a year ago and an average forecast of analysts of 5 8000000000.
Revenues fell 8% to 48 billion crowns, while analysts had forecast on 50500000000.
On Thursday, Nokia Siemens Network (NSN), one of his main rivals, posted a decline of 5% of its turnover in the period.
Like NSN, Ericsson said its sales had been affected by supply shortages of certain components.
"We believe (the break) weighed negatively to height of three to four billion kronor on sales for the quarter," the company said in a statement.
Ericsson's gross margin, 39%, came out at a level well above expectations, the group has benefited from the effect of cost reductions and a "mix" positive activities.