STOCKHOLM -(Dow Jones)- Ericsson Friday said the infrastructure business is picking up thanks to demand in mobile infrastructure in high-growth markets, but stopped short of saying the downward trend in profitability had bottomed out going forward.
At 0815 GMT Ericsson's shares were up 21%, or SEK2.56at SEK15 following the report's release.
Chief Executive Carl-Henric Svanberg said he wouldn't guide beyond the first quarter, which he said is seasonably weak.
Still, he said he is seeing strong growth in the emerging markets of India and China, as well as increasing sales in the U.S.. Western Europe, however, remains slow.
He said the company gained global market share during the quarter from most rivals except the Chinese, saying Ericsson has around 40% of the world's mobile infrastructure market.
Ericsson Friday posted first-quarter sales ahead of expectations, maintained its forecast for a flat mobile infrastructure market in 2008 and said cost-cutting measures are on track.
Sales rose 4.8% to SEK44.18 billion from SEK42.16 billion in the quarter ended March 31, beating analysts' expectations of SEK42.30 billion.
Still, net profit in the quarter fell on poor network sales in developed markets and at its Sony Ericsson mobile phone joint venture. Net profit fell 55% to 2.65 billion Swedish kronor ($445.6 million) from SEK5.82 billion in the year prior period.
-By Adam Ewing, Dow Jones Newswires; +46 8 545 130 95; adam.ewing@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 25th April 2008
Posted to: www.cellular-news.com/story/30790.php