Ericsson's Q2 profit beats expectations, says North America growth was good
Operating profit excluding restructuring charges was 7.0 billion crowns against a year-earlier loss of 11.9 billion
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[STOCKHOLM] Swedish telecom equipment maker Ericsson reported on Tuesday (Jul 15) a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts.
Operating profit excluding restructuring charges was 7.0 billion crowns (S$932.9 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts.
“We have structurally lowered our cost base and are strongly focused on delivering further efficiencies,” CEO Borje Ekholm said in a statement.
The company said sales in its Americas segment grew 10 per cent on the back of good growth in its biggest market North America.
“In North America, sales in Networks and Cloud Software and Services increased, benefiting from previous contract wins,” it said.
Group sales fell 6 per cent to 56.1 billion crowns, against a mean forecast of 59.3 billion in the poll. Organic sales however grew 2 per cent.
Ericsson said tariffs dampened profit margin growth at its Networks segment.
It said increased uncertainty remains on the company’s outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment. REUTERS
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