THE RESULTS: Wireless equipment maker LM Ericsson AB reported a 4 percent rise in third-quarter profit. Sales for the July-September period were particularly buoyant, increasing 17 percent.
THE REASON: Strong mobile broadband sales and increased market share offset weaker margins.
MORE ON THE MARGINS: The increased share of services business, as well as a higher proportion of coverage projects and accelerating network modernization projects in Europe, had a negative impact on the company’s gross margin, which decreased to 35 percent from 39 percent a year ago. That’s weaker than expected.
