Ericsson Turns In Q1 Profit
By Carlo Longino, Fri Apr 23 16:15:00 GMT 2004
Following a couple weeks of generally strong earnings in the industry, Ericsson today reported strong first-quarter profits.
The top network infrastructure vendor earned 4.3 billion Swedish crowns ($558.2 million) in the quarter, comparted to a 3.5 billion crown loss in the same period a year ago. Analysts were expecting a 3.47 billion crown profit, and the higher figure was driven by a 9% increase in sales and a deep cost-cutting program instituted by CEO Carl-Henric Svansberg when he took over in 2003.
The company's margins were 44.7 percent, higher than expected, and the company's orders exceeded sales in the quarter. Ericsson also said it expects "slight to moderate" growth in the infrastructure market for the rest of the year, as carriers ease back in to network spending, particularly in 3G rollouts.