Economic|Interim reports
Operating profit was SEK 8.8 billion, nearly SEK 1 billion higher than analysts expected.
Network devices In July – September, Ericsson’s profitability was better than analysts expected, despite the company’s difficulties in China.
The company had net sales of SEK 56.3 billion, or EUR 5.5 billion, and operating profit excluding non-recurring items was SEK 8.8 billion, or EUR 863 million. Analysts predict that operating profit would have been SEK 7.9 billion (EUR 775 billion).
Net sales decreased by two percent and operating profit by one percent from the same period last year, although sales in Northeast Asia, mainly in China, decreased by 35 percent.
In North America, Ericsson’s net sales increased by 13 percent and in Europe and Latin America by 9 percent.
Several States have banned the use of Huawei’s products by Ericsson and Nokia’s Chinese competitor in fifth-generation (5g) mobile networks of telecom operators. Because of this, Chinese telecom operators have begun to favor Huawei hardware and software.
Managing director Björne Ekholm Ericsson announces in the interim report that Ericsson will begin reducing its operations in China this quarter. He is pleased that Ericsson was able to increase its market share outside China.
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