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High increase of Ericsson’s profit for the 3rd quarter

The largest manufacturer of wireless network equipment in the world, Ericsson AB announced better than expected earnings for the third quarter after the mobile operators in North America, which are among the largest customers of the company tripled its increased costs for equipment delivered. The shares of Ericsson rose the most in six months after the Swedish company announced a net profit of 3.68 billion kroner (553 million dollars) for the third quarter. A year ago, its positive financial result was the amount of 810 million kroner. Market expectations were Ericsson to turn a profit of 3.52 billion kroner. Sales of the Stockholm-based company rose 2% yoy to 47.5 billion kroner, which was slightly below analysts' forecasts. The sales in North America, which is the largest market for Ericsson, rose by an impressive 223 percent because of investments in mobile operators' networks for high speed data access via smartphones and netbooks. The sales in China, however, failed to reach its level a year ago when the Asian country is building a 3G network. The shares of Ericsson rose 6.8 percent to 76.8 kronor on the Stockholm stock exchange following the publication of its accounts for the past quarter. The company opened more than 1000 IT Jobs London, which was increase the quality of the support for the devices in Western Europe and United Kingdom.
The company is the largest manufacturer of equipment for building wireless networks in the world and has increased its market share to 40% from 30% in early 2008, according to research firm Infonetics Research. For this has helped the division and the acquisition of equipment for wireless communications, the bankrupt Nortel Networks.