Ericsson: returns to operating profit with savings, 5G

(CercleFinance.com) - Wireless equipment maker Ericsson posted a small operating income for the second quarter, due to cost reductions and the ramp-up of 5G, even though sales continued to decrease.


Ericsson shares rose 8.9 per cent to 73.6 Swedish krona in Stockholm after the report.

The Stockholm-based company said operating income was 200 million Swedish krona in the past quarter, compared to a loss of 500 million krona in the same period of 2017.

Its gross margin improved to 34.8%, from 29.1% one year ago.

Ericsson said second-quarter sales fell 1% to 49.8 billion krona, despite strong sales growth in North America.

The gear maker said it benefited from "good market traction" in networks, particularly in North America, where the largest operators are currently preparing for 5G.

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