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Ericsson beats expectations

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Ericsson beats expectations
10:49 CEST+02:00
Swedish telecom infrastructure group Ericsson reported on Friday a dramatic fall in first-quarter net profits compared to the equivalent figure last year, but the result beat expectations and sent its share price soaring.

For the January-March quarter, Ericsson said its net profit had been more than slashed in two to 2.6 billion kronor ($434 million), down from 5.8 billion kronor a year earlier.

The world's leading mobile telecom infrastructure company also saw its operating income drop 47 percent to 4.3 billion kronor, according to its earnings statement.

Ericsson's announcement that its operating margin had slumped 14 percent to 9.7 percent meanwhile beat the 9.0 percent margin analysts polled by SME-Direkt had expected for the quarter.

The company's net sales for the period meanwhile climbed 4.74 percent to 44.2 billion, again beating analyst expectations of 41.8 billion kronor.

After issuing its report, Ericsson saw its stock price open up 20.9 percent at 15.02 kronor on the Stockholm stock exchange. By 0830 GMT, its shares were showing a gain of 21.54 percent to 15.12 kronor in a market up 2.46 percent on average.

"Our business developed well in the quarter, considering the present market environment and the declining US dollar," company president and chief executive Carl-Henric Svanberg said in the statement.

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