Ericsson surprises with 224 per cent profit leap

April 27, 2011 | 14:48

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

From January to March, the company recorded group net profits of 4.1 billion kronor (460 million euros, $675 million), up from 1.26 billion kronor for the same period in 2010.

The figure was higher than the three billion kronor which analysts consulted by Dow Jones Newswires had expected.

Turnover was helped by a 39-per cent increase in sales in North America; a 46-percent rise in Central Asia and northern Europe, and a 17-per cent; and a 74-per cent rise in China and North East Asia.

"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 to secure that we limit the impact on our customers," he added.

AFP

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