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Ericsson Posts Big Profit Jump

Ericsson, the Swedish telecommunications company, said Friday third-quarter earnings soared to 3.68 billion kronor ($551.4 million) from 810 million kronor a year earlier.

STOCKHOLM, Sweden (

TheStreet

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Ericsson

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, the Swedish telecommunications company, said Friday third-quarter earnings soared to 3.68 billion kronor ($551.4 million) from 810 million kronor a year earlier on operational improvements, strength at its Sony Ericsson joint venture and fewer restructuring charges.

Ericsson said quarterly revenue rose to 47.5 billion kronor from 46.4 billion kronor a year earlier.

Sony Ericsson, the company's joint venture, with

Sony

(SNE) - Get Report

, last week reported its

third consecutive quarter of profits

.

Ericsson said certain supply chain bottlenecks have been resolved, but industry-wide component shortages remain.

"The situation has gradually improved during the quarter but it remains a challenge to fully meet the demand for mobile broadband," Ericsson said in a press statement.

Ericsson said mobile broadband continued to grow in the quarter, especially in North America and Japan. In China, demand for 2G capacity expansions returned, and India gradually improved with 2G deliveries and in the 3G vendor selection. Western Europe is still slow, the company said.

"In other markets, development is slow with continued cautious operator investments," Ericsson said.

-- Written by Joseph Woelfel

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