Ericsson’s profit shows readiness for new tech
The Swedish telecoms firm turns its first profit in two years, sending shares up nearly 5%
Stockholm — Shares in Swedish telecoms firm Ericsson shot up by 5% in early trades on Thursday after it posted better-than-expected third quarter earnings, turning its first net profit in more than two years. By noon, the share price was still up by 4.72% on the Stockholm stock exchange in an overall market trading 0.6% higher. Ericsson’s net profit soared to 2.7-billion kronor during the period July-September, compared to a net loss of 3.6-billion kronor a year ago. Analysts had expected a loss of 167-million kronor. “We see improvements across our businesses,” CEO Borje Ekholm said in the report. Once a market leader in the mobile phone industry, Ericsson saw its earnings slump year after year following the meteoric rise of smartphone giants in the US and Asia. New technologies But it has fought on against the odds, adapting to the rapidly shifting market by focusing its attention on research and development of new technologies for telecoms equipment. The company launched a major ...
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