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Ericsson Q2 sales disappoint, shares drop

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Ericsson Q2 sales disappoint, shares drop
CEO Hans Vestberg at Q2 results press conference
11:22 CEST+02:00
Swedish telecom equipment maker Ericsson reported a surge in second-quarter profits, but a fall in sales disappointed investors as its shares dropped.

In the three months to June, Ericsson raised net profit from the equivalent

figure last year by 126 percent to 1.88 billion kronor ($258 million).

However, sales fell by 8 percent to 48 billion kronor, the group said, saying that sales had been held back by shortages of supplies and because customers were delaying orders.

Analysts, as polled by Dow Jones Newswires, had expected a net profit of 2.73 billion kronor and sales of 49.8 billion kronor.

The price of shares in the company, the biggest maker in the world of networks for mobile telephone operators, fell immediately by 5.5 percent to 84 kronor. The overall market here showed a fall of 0.7 percent.

CEO Hans Vestberg said that market conditions in the second half of 2009, when operators had moderated their orders, had continued in the first half of this year. In the second quarter, sales on a 12-month comparison had fallen in all regions except in North America.

However, compared with sales in the first quarter, the picture was less clear, with sales picking up in North America, northern Europe and in Mediterranean countries.

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