Ericsson reports $260m first-quarter profit

Ericsson chief executive Hans Vestberg speaks during a news conference at the company's headquarter in Stockholm April 23, 2014. Mobile telecom equipment maker Ericsson expects recent business wins to lift sales later this year, after missing first-quarter sales and profit forecasts due to continued weak demand in North America and Japan.

Ericsson chief executive Hans Vestberg speaks during a news conference at the company's headquarter in Stockholm April 23, 2014. Mobile telecom equipment maker Ericsson expects recent business wins to lift sales later this year, after missing first-quarter sales and profit forecasts due to continued weak demand in North America and Japan.

Published Apr 23, 2014

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Stockholm - Wireless equipment maker Ericsson says first-quarter profit increased to 1.7 billion kronor ($260 million) mainly because of restructuring and licensing income even as revenue fell by 9 percent compared to the same period a year earlier.

Net sales in the period dropped to 47.5 billion kronor from 52 billion kronor.

Net profit in the same period last year was 1.2 billion kronor.

The world's largest supplier of mobile phone infrastructure said Wednesday that the main reason for the sales decline was lower revenue from mobile broadband projects in North America and reduced activity in Japan.

But the Sweden-based company was upbeat saying it expects “key contracts” will positively impact sales in the second half of the year. - Sapa-AP

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