STOCKHOLM (Reuters) - Telecom equipment maker Ericsson (ERICb.ST) reported on Friday lower-than-expected operating profit of 7.6 billion Swedish crowns ($1.20 billion) in the fourth quarter and announced major cost cuts.
Ericsson, the world’s biggest mobile network maker, said it was planning for “flattish” development in the mobile infrastructure market in 2008 and it will cut costs by about 4 billion crowns per year, with the full effect coming in 2009.
It is cutting about 1,000 jobs in Sweden.
Earnings before income and tax compared with 5.6 billion crowns in the third quarter and 12.2 billion crowns in the year-earlier period. Forecasts were for a 7.94 billion crown fourth-quarter profit.
The company said it had a 14 percent operating margin, below forecasts for 14.7 percent.