Ericsson and Nokia fall after Motorola warning

Telecoms shares fell heavily in opening trading on the Stockholm exchange following a profits warning from American mobile giant Motorola.

Nokia fell immediately by 3 percent, while Ericsson fell 1 percent.

Motorola issued a profits warning late on Thursday evening Swedish time. The warning had most impact on Nokia, because the two companies compete in the same low-price mobile handset segment.

Analyst Urban Ekelund said Sony Ericsson was not as badly affected by the news because it is more focused on premium mobile phones.

Motorola’s chief executive Ed Zander said the company was “very disappointed” with the company’s performance in the fourth quarter of 2006. It said it now expected sales of $11.6-11.8 billion, compared with an earlier prognosis of $11.8-12.1 billion, with expected profits down to between 13 and 16 cents per share.