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Ericsson beats Q1 result forecasts on 5G demand, growth in North America

Excluding restructuring charges and one-off items, operating margin was 7.2 per cent

Reuters  |  Stockholm 

Flags with Ericsson logo are pictured outside company's head office in Stockholm, Sweden (Image: Reuters)
Flags with Ericsson logo are pictured outside company's head office in Stockholm, Sweden (Image: Reuters)

Mobile beat first-quarter result forecasts on Wednesday due mainly to strong growth in as the company raised its full-year outlook for the global networks market.

The Swedish company has shown steady improvement in profitability after slashing costs and seeing increasing demand for as it rebounds from falling spending on networks by in the middle of the decade.

The mobile said it now expects the Radio Access Network (RAN) equipment market to grow by 3 per cent this year, up from a previous forecast for 2 per cent growth.

Excluding restructuring charges and one-off items, operating margin was 7.2 per cent.

The company, which counts China's and Finland's as its main rivals, has pledged to deliver an operating margin, excluding restructuring costs, of more than 10 per cent in 2020.

also warned that ongoing investigations by the (SEC) and the (DOJ) could result in "material financial and other measures".

Quarterly operating profit swung to 4.9 billion crowns from a 312 million loss a year ago, well above a mean forecast for a 2.8 billion profit in a Reuters poll. Sales rose to 48.9 billion crowns from a-year-ago 43.4 billion, edging forecasts of 48.2 billion.

The firm has staked its recovery on rising demand for and some analysts think it could benefit from current turmoil surrounding

First Published: Wed, April 17 2019. 11:54 IST
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