Telecoms equipment giant Ericsson reported second-quarter earnings and sales that beat analysts' forecasts.
The group today reported a pretax profit of 8.5 billion Swedish crowns ($1.09 billion), above the average forecast in a Reuters poll of 7.7 billion crowns. It was up from 6.7 billion crowns in the first quarter and 7.3 billion crowns in the second quarter of 2004.
Sales came in at 38.4 billion crowns, compared with a forecast 35.11 billion crowns, after 31.5 billion in the first quarter and 32.6 billion crowns in the 2004 second quarter.
But the company's closely watched gross margin was under the consensus at 45.9 per cent versus a forecast 46.8 per cent, and down from the first quarter's 48.5 per cent.
"For 2005 we now believe that the global mobile systems market, measured in US dollars, will show moderate growth compared to 2004," it said in a statement.
Ericsson's previous forecast was for slight market growth. It said the network rollout in North America was well under way, including invoicing for equipment worth near two billion crowns originally planned for the third quarter.
Ericsson shares rose more than 3 per cent to 27.2 crowns in initial pre-market trade, but later edged back to 26.6 crowns, versus a close last night of 26.3 crowns.