Improved Ericsson results disappoint

Ericsson has disappointed investors with third quarter results below analysts' expectations, but still up on the same period in 2005.

Pre-tax profits at the telecoms equipment giant were 8.8 billion kronor in the third quarter, compared to 8 billion in the third quarter last year.

Turnover increased from 36.2 billion to 40.8 billion kronor.

News agency Reuters reports that analysts had on average expected pre-tax profits of 9 billion kronor and a turnover of 41.8 billion.

CEO Carl-Henric Svanberg was upbeat over the results.

“We see continued positive business momentum and accelerating focus on broadband,” he said.

“For billions of people mobile broadband will be the way to reach high-speed connectivity and access to the Internet. This will cause a significant increase in voice and data traffic in the world’s networks.”

Svanberg also said that key contract wins had strengthened the company’s performance, and that strong results from Sony Ericsson had boosted profits.