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Ericsson Surprises with 224-per cent Profit Leap

Source: AFP

Swedish giant Ericsson, a world leader in making telecommunications equipment, recorded a 224-per cent rise in first-quarter net profit, higher than expected, a company statement said on Wednesday.

From January to March, the company recorded group net profits of 4.1 billion kroner (EUR460 million, or US$675 million), up from 1.26 billion kroner for the same period in 2010.

The figure was higher than the three billion kroner that analysts consulted by the Dow Jones newswire had expected.

Turnover was helped by a 39-per cent increase in sales in North America, as well as increases in other regions.

“Sales in the first quarter were not impacted by the devastating earthquake and tsunami in Japan,” said Hans Vestberg, President and Chief Executive Officer of Ericsson.

The company’s supply chain of components had been partly dependent on Japan, which had caused some delays, he said.

“We have taken a number of actions to mitigate the effects (so) that we limit the impact on our customers,” he added.