Updated from 3:46 a.m. EDT

STOCKHOLM ( TheStreet) -- Ericsson ( ERIC), the Swedish telecom-equipment maker, said second-quarter earnings more than doubled to 1.9 billion kronor ($260) million but sales slipped 8% on continued industry component shortages and supply chain bottlenecks.

The earnings fell short of the estimates of analysts. The stock was trading down about 5% in European trading.

Ericsson reported second-quarter sales of 48 billion kronor vs. 52.1 billion a year earlier. Ericsson estimates the industry problems hurt second-quarter sales by between 3 billion to 4 billion kronor.

Ericsson said gross margin increased to 37% from 33.8% on "business mix and efficiency gains."

Ericsson said the market conditions it saw in the "second half of 2009 with mixed operator investment behavior prevailed also in the first half of this year." The company said all regions, except North America, showed lower year-over-year sales.

Sequential sales, Ericsson said, showed a more mixed picture with growth in the Mediterranean, North America, Northern Europe and Central Asia regions, as well as Sub-Saharan Africa.

-- Reported by Joseph Woelfel in New York.

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