Ericsson Profit Tumbles 30%

The Swedish maker of wireless equipment said first-quarter earnings fell 30% on weaker demand from developing markets.
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Ericsson

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, the Swedish maker of wireless equipment, said first-quarter earnings fell 30% on weaker demand from developing markets.

Ericsson said first-quarter profit was 1.3 billion kronor ($179.7 million), missing the estimates of most analysts. Ericsson recorded restructuring charges of 2.2 million kronor in the quarter.

Ericsson said group sales fell 9% in the quarter to 45.1 billion kronor.

"The market conditions we saw in the second half of 2009 prevailed also in this quarter with mixed operator investment behavior across regions and markets. Operators in a number of developing markets were still cautious with their investments," said Ericsson CEO Hans Vestberg, in a statement Friday.

Ericsson said it now estimates global mobile data traffic to have surpassed voice traffic, growing about 280% in the past two years.

Ericsson said it expects mobile data traffic to double annually over the next five years.

-- Reported by Joseph Woelfel in New York.

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