• Sweden edition
 
Sweden's Ericsson posts massive profits hike

Sweden's Ericsson posts massive profits hike

Published: 27 Apr 2011 09:47 GMT+02:00
Updated: 27 Apr 2011 13:48 GMT+02:00

Swedish telecom giant Ericsson reported a whopping 224 percent rise in profits on Wednesday, surprising analysts and sending its stock up almost 7 percent in early trading.

From January to March, the company recorded group net profits of 4.1 billion kronor ($675 million), up from 1.26 billion kronor for the same period in 2010.

The figure was higher than the three billion kronor which analysts consulted by Dow Jones Newswires had expected.

“Group sales in the quarter increased by 17 percent year-over-year driven by continued strong demand for mobile broadband and especially for the multi-standard radio base station RBS 6000,” said Hans Vestberg, president and chief executive officer of Ericsson.

Turnover was helped by a 39 percent increase in sales in North America; a 46 percent rise in Central Asia and northern Europe; and a 74 percent rise in China and North East Asia.

"Sales in the first quarter were not impacted by the devastating earthquake and tsunami in Japan," Vestberg said.

The company's supply chain of components had been partly dependent on Japan, which had caused some delays, he said.

"We have taken a number of actions to mitigate the effects to secure that we limit the impact on our customers," he added.

These measures include finding and integrating alternative components in our products as well as increasing volumes with second source suppliers, the firm advised.

The firm continued to claim market share within 3G networks and maintained its control of over 50 percent of the market for 4G/LTE.

Ericsson's mobile phone joint venture with Japan's Sony meanwhile saw its first-quarter sales, reported earlier this month, fall 19 percent to 1.1 billion kronor and was "experiencing some disruptions in its supply chain from the earthquake in Japan."

And its other joint venture, wireless technology company ST-Ericsson, saw its sales plunge 27 percent during the quarter to 444 million kronor, which was a steeper drop than expected.

The decline was expected to continue in the second quarter, "due to the ongoing decline in legacy products," as ST-Ericsson continues its shift to new products, Ericsson said, adding it was "committed to financially support ST-Ericsson's execution of their new portfolio."

Ericsson's normally sedate stock responded positively to the report on Wednesday, climbing 9.38 percent by 2pm.

At the end of March, Ericsson counted 91,546 employees and remained the market leader in mobile network equipment ahead of Finnish-German giant Nokia Siemens, French-based telecom equipment maker Alcatel-Lucent and China's Huawei.

AFP/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Swedes open coffin of 850-year-old king
Photo: Bertil Ericson/TT

Swedes open coffin of 850-year-old king

UPDATED: Scientists pried open the 850-year-old casket of King Erik the Holy on Wednesday, hoping to find out more about the king, his crown, and his eating habits. READ () »

TeliaSonera announces first-quarter profit drop
TeliaSonera CEO Johan Dennelind. File photo: TT

TeliaSonera announces first-quarter profit drop

Stockholm-listed telecom operator TeliaSonera on Wednesday said profits had fallen in the first quarter, but hoped offering customers more data solutions in the future would turn things around. READ () »

'Imperfect EU better than revolting nationalism'
Fredrik Reinfeldt. File photo: TT

'Imperfect EU better than revolting nationalism'

Swedish Prime Minister Fredrik Reinfeldt on Wednesday urged young voters to head to the European parliamentary polls on May 25th "to cure the European disease of nationalism". READ () »

Ericsson quarterly profit defies sluggish sales
Ericsson CEO Hans Vestberg at the first quarter press conference. Photo: TT

Ericsson quarterly profit defies sluggish sales

Swedish telecom giant Ericsson on Wednesday announced a drop in sales but posted a sharp rise in first-quarter profit, which nonetheless fell shy of analyst predictions. READ () »

Fatal Norrköping brawl
Four brothers held as cops fear brawl reprisals
Photo: Johan Nilsson/TT

Four brothers held as cops fear brawl reprisals

Swedish police fear that several people involved in a brawl in eastern Sweden on Monday night may be seeking revenge after two brothers were shot dead. READ () »

Sponsored Article
Beautiful pearls of southeast Sweden
The town of Västervik.

Beautiful pearls of southeast Sweden

Ask a Swede, and they are likely to say that their favourite holiday spot is in the southeast of Sweden. Eastern Småland and Öland offer a smörgåsbord of all the things dearest to the Swedes - from the beloved children's book author Astrid Lindgren to deep forests, long sandy beaches, perfect spots for that all-important 'fika', and a surprising amount of space, peace and quiet. READ () »

Weekend weather to bring summer warmth
Swedes enjoy hot dogs and cherry blossoms in Stockholm's Kungsträdgården. Photo: Jessica Gow/TT

Weekend weather to bring summer warmth

The sun is set to stick around and temperatures could climb into the twenties over the weekend, Swedish meteorologists said on Wednesday READ () »

'Day-care rapist' admits molesting eight kids

'Day-care rapist' admits molesting eight kids

A 21-year-old man confessed on Wednesday to sex crimes against eight children at a day care where he was working as an intern. READ () »

Swedish cops nab man for having big muscles
An unrelated bodybuilder. File photo: Ann Törnkvist

Swedish cops nab man for having big muscles

Police in Sweden's south who hauled a muscular man in for steroid testing have had their knuckles rapped, after it was ruled that big biceps cannot be grounds for narcotics suspicions. READ () »

Swedish girls report more eating problems
Teen girls. File photo: Chloe Chaplin/Flickr

Swedish girls report more eating problems

A youth wellbeing report from Save the Children found that more teenage girls than in previous surveys reported having an eating disorder. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Features
Sponsored: South-eastern Sweden offers Öland beaches and more
Gallery
Swedish underwear shop puts staff in front of the camera
Gallery
IN PICTURES: The Local's Property of the Week - Täby
Sponsored: India+Sweden Week - India Unlimited
Features
Sponsored: India+Sweden Week - A film, food, and finance feast
National
University applications rocket to record high
finest.se
Gallery
People-watching April 18-20
TT
Society
Kids in Victorian garb mark Swedish Easter
Shutterstock
National
Swedish MP ordered chemtrail probe
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Advertisement:
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

712
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com