Ericsson Q1 op profit lags forecast

STOCKHOLM, April 23 Wed Apr 23, 2014 1:40am EDT

STOCKHOLM, April 23 (Reuters) - Mobile telecom gear maker Ericsson posted sales and first-quarter operating profit below expectations on Wednesday but said recent contracts won by the group would lift sales in the second half of the year.

Earnings before interest and tax were 2.6 billion Swedish crowns ($395 million) compared to 2.1 billion in the year-ago quarter, missing a mean forecast of 3.5 billion in a Reuters poll of analysts.

Sales at Ericsson, the world number one mobile network equipment maker, were 47.5 billion crowns against a forecast of 51.8 billion. The gross margin was 36.5 percent against a mean forecast of 34.0 percent.

Link to full report: r.reuters.com/wyz68v ($1 = 6.5855 Swedish Crowns) (Reporting by Sven Nordenstam)

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