Sweden's Ericsson Q3 profits soar

Source : AP
Last Updated: Sun, Oct 24, 2010 20:00 hrs

Swedish wireless equipment maker LM Ericsson AB on Friday said third-quarter net profits increased more than fourfold, boosted mainly by lower costs and improved performance in its joint venture Sony Ericsson which it owns together with Sony Corp.

The Stockholm-headquartered company reported a profit of 3.7 billion kronor ($557 million) in the quarter, soaring from 810 million kronor in the same quarter last year. The jump was mainly attributed to lower restructuring charges as well as improved results in Sony Ericsson, which managed to turn to a profit in the quarter.

Revenues in the July-September period rose to 47.5 billion kronor, from 46.4 billion kronor in the year-ago quarter.

On Thursday, the world's top mobile phone maker, Nokia, reported a third-quarter net profit of euro529 million ($733 million), from a net loss of euro559 million last year. It also announced it would lay off 1,800 people as it streamlines operations and restructures its lagging smart phone business.

With more than 80,000 employees worldwide, Ericsson is one of Sweden's biggest companies and has long been a key global supplier of fixed and mobile phone networks.

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