© Reuters. FILE PHOTO: The Ericsson logo is seen outside the company’s office in Kanata, Ontario, Canada, April 17, 2023. REUTERS/Lars Hagberg
By Martin Coulter
LONDON (Reuters) – Sweden’s Ericsson reported a 62% drop in adjusted operating profit for the second quarter on Tuesday, slightly beating market expectations.
The Swedish telecoms equipment maker’s operating profit, excluding restructuring fees, fell to 2.8 billion Swedish crowns ($271 million), compared to 7.4 billion a year earlier.
“Building on our strong position and despite challenging market conditions, we delivered a strong quarter – meeting expectations,” said Börje Ekholm, President and CEO of Ericsson. “We continue to execute with discipline and focus without losing sight of the long term.”
Citing the growing demand for 5G, Ekholm predicted that the market would go through a “gradual recovery” in late 2023, and pick up in 2024.
Net sales rose to SEK 64.4 billion, above the average analyst forecast of SEK 63.9 billion, according to Refinitiv data.
Ericsson’s total gross margin for the second quarter fell to 37.4% from 38.6% in the prior quarter.
($1 = 10.3374 SEK)