Ericsson profits climb in Q3
Afp, Stockholm
Ericsson, the world's largest supplier of mobile telecommunication networks, reported Thursday a 17 percent rise in third quarter net profit amid strong growth in all sectors, but earnings were lower than expected. Despite the weaker-than-expected numbers, Ericsson shares climbed by 0.94 percent to 26.85 kronor in late morning trading on the Stockholm stock exchange. The Swedish company posted a net profit of 6.2 billion kronor (842 million dollars, 670 million euros), up 17 percent on the same quarter a year earlier. Sales rose by 13 percent to 40.8 billion kronor, but were below analysts' forecasts of 41.7 billion. Pre-tax profits were also lower than analysts' forecasts of 8.9 billion, coming in at 8.8 billion kronor excluding restructuring costs of 2.9 billion and capital gains of 3.0 billion. The capital income was generated by the sale in September of its defence business Ericsson Microwave Systems, and its 40 percent holding in Saab Ericsson Space.
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