Ericsson posted solid results in its first quarter as net profit grew 27 percent thanks to strong sales in Europe and Asia. Subsidiary Sony Ericsson also contributed to the parent company's success as its first quarter profits doubled. Net profit for the quarter totaled $862 million as sales rose 8 percent to $6.27 billion. The slight increase in sales was buoyed by a 36 percent increase in revenue in Asia as demand for GSM networking equipment surged in China. Sales in Europe were also up, but North American sales declined 41 percent. A large contract with Cingular Wireless from 2006 to upgrade the network to 3G helped balance the scales, however. Sales also declined in Latin America--Ericsson said the region is showing signs of recovery in countries like Mexico and Brazil.
For more on Ericsson's Q1:
- see this report from The Houston Chronicle