Telecoms equipment firm Ericsson posted lower-than-expected third-quarter core earnings today and said sales in its key mobile networks market were hampered by tough market conditions.
The world's top mobile equipment maker reported operating earnings of 5.5 billion Swedish krona ($795 million), excluding restructuring charges and its loss-making joint ventures.
That compared with a mean forecast of 5.8 billion krona in a Reuters poll and 5.6 billion krona in the year-ago quarter.
Ericsson had been one of few companies that managed to maintain profits and sales despite the global crisis but it has not been immune to the downturn. It said in the previous quarterly report market conditions were getting tougher.
The climate for equipment makers forced rival Nokia to take a €908 million writedown last week at its Nokia Siemens Networks joint venture, which competes directly with Ericsson.
Ericsson did not give a market forecast.
Sales for Ericsson in the third quarter at 46.4 billion krona , were well below an expected 51.1 billion krona, with the companies biggest unit, networks, accounting for most of the shortfall.
Network sales in the third quarter declined year-over-year by 8 per cent.
"Even though the comparison is tough with last year's strong third quarter, the market was weaker," the company said in a statement.
"The markets are fairly strong in the world's leading economies, while demand is weaker in several emerging markets affected by the present economic climate."
Reuters