Print Edition
September 2010 
|
|
|
|
|
|
|
Ericsson Misses Q2 Forecasts |
« Back
|
|
Pauline Renaud, July 2010 |
|
|
|
(23 July 2010)
Ericsson AB, the world’s biggest maker of wireless networks, posted a rise in second quarter net profit but missed analysts’ estimates, as phone companies spent less on telecommunications infrastructure, explains Bloomberg.
“The conditions we saw in the second half of 2009 with mixed operator behaviour prevailed also in the first half of this year,” chief executive Hans Vestberg said in a statement. “In the quarter, all regions except North America showed lower year-over-year sales.”
Net income doubled to 1.88bn kronor ($260m) from 831m kronor a year earlier, the company said in the statement.
But analysts had predicted profit of 3.12bn kronor, the average of 17 estimates compiled by Bloomberg. In addition, sales were down 8 percent year-on-year at 48bn kronor versus a forecast of 50.5bn kronor.
Ericsson explained that its sales have been hit by industry component shortages and supply chain bottlenecks. “We estimate that this had a negative impact on our sales in the quarter by 3-4bn kronor,” Ericsson said in a statement.
|
|
|
|
|
= requires subscription
