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Mixed results from telecom giants

Thursday, July 21, 2011 - 01:21

July 21 - Swedish mobile phone maker Ericsson missed forecasts taking the gloss off strong quarterly sales while Finland's Nokia delivered a 391 million euro profit for the same period. Hayley Platt reports.

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Investors have ditched shares in Ericsson after it missed its forecast. The Swedish mobile phone maker fell almost 9 percent in morning trade after it reported pre-tax earnings of 5 billion Swedish crowns for the second quarter, well below a poll of Reuters analysts. The company blamed higher-than-expected restructuring costs, a one-off charge for staff cuts and a strong Swedish crown. Ericsson also forecast for less profit coming from some of its European network businesses. Hans Vestberta is the Ericsson's chief executive. SOUNDBITE: Hans Vestberta, Ericsson President and CEO, saying (English): "Services has the last two quarters suffered a negative growth, of course the currency has an impact on services and if you put that back they would have a growth." It was better news for Finnish rival Nokia. Demand for new smartphones helped boost the world's largest phone makers quarterly profit by 391 million euros. But it's still struggling to cope with far higher sales by Apple. Nokia were the first to bring smartphone technology to the market more than a decade ago but has since failed to maintain its lead. Nokia's shares gained 7 percent in mid-morning trade. Hayley Platt, Reuters

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Mixed results from telecom giants

Thursday, July 21, 2011 - 01:21