Ericsson reports Q2 sales above expectations

Ericsson reports Q2 sales above expectations

Mobile telecom equipment maker Ericsson has reported second-quarter sales and operating income above expectations.

Sales at the mobile network equipment manufacturer were 54.8bn crowns against a forecast of 52.5bn crowns - falling 1% on a comparable basis from the corresponding quarter a year ago. Comparable sales grew by 5 percent at the network division to 29bn.

Ericsson's operating income was 4bn Swedish crowns (£342m) compared to 2.5bn for the same quarter last year. 

The company said sales grew at its key networks unit with growth in the US, China, India and the Middle East. In China, Ericsson is selling equipment for the rollout of fourth-generation mobile gear.

"After a slow start of the year, we are executing on previously awarded 4G/LTE contracts in mainland China and Taiwan," Ericsson CEO Hans Vestberg said in a statement. He said that key contracts won by Ericsson would boost revenue during the second half of the year.

The company's gross margin was 36.4% against a mean forecast of 35.4%.


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