Ericsson Profit Drops 43% as Carriers Cut Spending
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Ericsson AB, the world’s largest maker of mobile-phone networks, reported a 43 percent decline in third-quarter profit as wireless operators curbed spending in a sputtering economy.
Net income fell to 2.18 billion kronor ($324 million) from 3.82 billion kronor, Stockholm-based Ericsson said today. Gross margin, or the percentage of sales remaining after production costs, slid to 30.4 percent from 35 percent, missing the 32.2 percent average of analysts’ estimates compiled by Bloomberg.