Ericsson Q3 net profit melts to SEK800m

22 October 2009 - Swedish telecoms equipment giant Ericsson (STO: ERIC B) saw its net profit slump 74% year-on-year to SEK800m in the third quarter of 2009 due to restructuring charges at its joint ventures and lower demand for network equipment.

Sales fell 6% to SEK46.43bn, with a 4% decline for comparable units, and down 12% adjusted for currency exchange rate effects, the company said in its interim report today.

Operating profit excluding joint ventures and restructuring charges was SEK5.5bn, down 3%. Operating margin improved slightly to 11.7% from 11.5%.

Including the results of the handset joint venture Sony Ericsson and mobile platform venture ST-Ericsson, operating profit was SEK3.97bn, down by some SEK1bn from a year earlier.

"While the current economic environment affects all parts of society, the longer-term fundamentals for our industry remain solid," CEO Carl Henric Svanberg said and added that the company was well positioned to lead the industry forward.

(EUR1= SEK 10.3)

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