Ericsson, the world's largest supplier of mobile telecoms networks, has reported a 17% rise in third quarter net profits with strong growth in all sectors, but earnings were lower than expected.
The Swedish company posted a net profit of €670m. Sales rose by 13%, but were below analysts' expectations. Pre-tax profits were also lower than analysts' forecasts.
Ericsson forecast 'moderate' growth compared to 2005 for the year in its main market of mobile networks, and predicted similar growth in 2007.
Sales in western Europe were up 19%, while Central and Eastern Europe, Middle East and Africa sales grew 24% compared to the same quarter last year. Asia Pacific sales rose 38% but North America sales were down 36% and Latin American sales dropped 18%.
Chief executive Carl-Henric Svanberg said he expected stronger growth in the Americas in 2007 but stressed that overall growth next year was expected to be similar to that seen in 2006.
