Ericsson Slides on Weak Reception to Second-Quarter Results
Ericsson (ERIC) shares are down sharply in early trading after the company reported disappointing second-quarter results. As Marketwatch notes, profits of 1.9 billion Swedish kronor came in below the Street consensus of 2.94 billion, while revenue of 48.5 billion kronor were about in line.
The company provided a cautious outlook on the telecommunications equipment market. “With no major changes in the market environment, we still find it prudent to plan for a flattish mobile infrastructure market in 2008 and our focus on adjusting our cost base remains,” CEO Carl-Henric Svaberg said in a statement. Ericsson said that sales “have continued to pick up in the U.S.,” while remaining slow in Europe.
