Shares in telecoms equipment maker Ericsson plunged 25 per cent in early trade today after it said third-quarter profits fell short of expectations.
Ericsson said its preliminary operating earnings fell to 5.6 billion Swedish krona ($876 million) from 8.8 billion crowns a year ago on the back of disappointing sales of mobile network upgrades and expansions.
"The unexpected development in the quarter is mainly due to a shortfall in sales in mobile network upgrades and expansions which resulted in an unfavourable business mix that also negatively affected group margins," the group said.
Ericsson shares fell 25 per cent to 19.64 Swedish krona. The shares had been climbing from a 2007 low of 23.64 krona set in mid-August, but they are still down from 27.7 krona at the start of the year.
Ericsson was due to report earnings on October 25th, but it issued preliminary figures ahead of time today. It said net sales rose 6 per cent to 43.5 billion krona, compared with market forecasts for 45.5 billion krona.