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Ericsson reports profits slump

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09:07 CEST+02:00
Swedish telecom firm Ericsson has reported a 30 percent slump in net profits for the first quarter 2010, after weak sales development.

Ericsson, which also was hit by big restructuring charges, said that weak conditions seen last year carried over into the first three months of this year.

"The market conditions we saw in the second half of 2009 prevailed also in this quarter with mixed operator investment behaviour across regions and markets," chief executive Hans Vestberg said in a statement.

"Operators in a number of developing markets were still cautious with their investments," he added.

The group posted a 30 percent drop in net profit to 1.26 billion kronor ($173 million dollars) for the first three months of the year, down from 1.72 billion for the same period of last year.

The result fell short of analysts' estimates for 1.79 billion kronor, according to a poll by Dow Jones Newswires.

Meanwhile, sales fell nine percent over the period to 45.1 billion kronor from 49.6 billion. Financial analysts had forecast sales fell three percent to 47.8 billion kronor.

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