Ericsson Earnings Miss Expectations

STOCKHOLM—Ericsson AB reported a 49% jump in first-quarter net profit, below market expectations, on a 2% drop in revenue, and announced a shake up of senior management, reflecting the tough trading conditions in the telecommunications-equipment sector.

Ericsson, one of the world's largest wireless telecoms equipment providers, said on Thursday that net profit rose to 1.97 billion Swedish kronor ($242.6 million) in the three months to end-March from 1.32 billion kronor a year earlier on a slide in revenue to 52.21 billion kronor from 53.52 billion kronor.

The results came in below analysts' expectations. Analysts polled by FactSet expected a net profit of 3.13 billion Swedish kronor, and sales of 54.52 billion kronor.

Ericsson also announced sweeping changes to its executive team, appointing eight new members at once, as part of a corporate reorganization. The "organizational and structural changes" were necessary to "strengthen strategy execution to drive growth and profitability," Ericsson said.

Write to Matthias Verbergt at [e-mail]

(END) Dow Jones Newswires

April 21, 2016 03:15 ET (07:15 GMT)

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