April 22, 2005

Ericsson managed to boost sales and net income in its first quarter, compared with the same period in 2004. These news pushed investors to send the company's stock up to $30.87 per share.

Ericsson's net sales leapt 12 percent in the first quarter to $4.5 billion, while the company's net income increased to $656 million. Ericsson said the solid results were due to increased operator interest in network improvements and third-generation upgrades.

"Our focus on profitable growth through intensified customer partnerships and operational excellence is successful and is giving us a distinct competitive advantage," said Carl-Henric Svanberg, Ericsson's president and chief executive officer.

"The increase in mobile infrastructure market share of 2 to 3 percentage points last year proves the strength of our strategy."

Ericsson said it scored gains in Europe, the Middle East, Africa and Asia, but that its sales in North America tumbled 24 percent year-over-year. Ericsson blamed the drop on the massive consolidation in the U.S. wireless market.

Although Ericsson managed notable increases in its first-quarter sales compared with last year, the company warned that the "global mobile systems market will show slight growth compared to 2004."

Source: RCR News