ERICSSON WARNS ON Q3 PROFIT AS WEAK DE­MAND BITES

The Sun (Malaysia) - - SUNBIZ -

STOCKHOLM: Swedish telecom­mu­ni­ca­tions tech­nol­ogy com­pany Ericsson yes­ter­day is­sued a profit warn­ing for the third quar­ter, cit­ing weaker de­mand in sev­eral key mar­kets. Ericsson said yearon-year sales in the quar­ter were ex­pected to de­cline 14% to 51.1 bil­lion kro­nor (RM22.5 bil­lion). Op­er­at­ing in­come was es­ti­mated to plunge to 300 mil­lion kro­nor, com­pared to 5.1 bil­lion kro­nor a year ago. Ericsson cited lower de­mand for mo­bile broad­band in Brazil, Rus­sia and the Mid­dle East, and sat­u­rated mar­kets in Europe af­ter last year’s roll­out. Last week, Ericsson said it planned to shed 3,000 jobs in its do­mes­tic op­er­a­tions, rep­re­sent­ing about one fifth of its 16,000-strong work­force in Swe­den. – dpa

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