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Ericsson result 'lower than expected'

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08:36 CEST+02:00
Telecoms giant Ericsson has announced that its third quarter result will be lower than expected.

In its revised figures, the company said it expected sales of 43.5 billion kronor ($6.65 billion), an operating income of 5.6 billion kronor and a cash flow of -1.6 billion kronor for the year's third quarter.

Ericsson cited an "unexpected shift in the business mix" as the explanation for results that did not live up to its own expectations or those of the market.

"The unexpected development in the quarter is mainly due to a shortfall in sales in mobile network upgrades and expansions which resulted in an unfavorable business mix that also negatively affected Group margins," said CEO Carl-Henric Svanberg in a statement.

"All other businesses performed as expected. The effect of market dynamics is always a matter of judgment. This quarter we have underestimated the effects," he added.

The figures can be compared to Ericsson's earnings in the third quarter last year, when it posted sales of 41.3 billion kronor and operating income of 8.8 billion kronor.

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