Summary Box: Ericsson Q3 profit up, margins weaken

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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.