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Ericsson Reports Growth in 4Q Earnings

Ericsson reported yesterday that its fourth-quarter earnings grew 52 percent, boosted by seasonality and a strong growth in services.

The Stockholm-based company reported a net profit for the quarter of 8.5 billion kronor (US$1.18 billion, euro967 million), up from 5.6 billion kronor a year earlier. For the year, it reported net profit of 24.3 billion kronor (US$3.19 billion, euro2.62 billion).

The earnings came on sales of 45.7 billion kronor (US$6.01 billion, euro4.93 billion) for the quarter, a 16 percent rise. Full-year sales were 151.8 billion (US$19.97 billion, euro16.37 billion), up 15 percent.

CEO Carl-Henric Svanberg said in a statement that Ericsson is "inspired by the growth in services and the trust our customers show in our ability to operate and maintain their networks. Operators are rapidly increasing their focus on total cost of ownership and the savings we are able to offer are of obvious value."