Stockholm, Sweden-based Ericsson AB reported a net income of 3.68 billion kronor, or $553 million, up from 810 million kronor or $122 million a year earlier.
The profits were greater than the estimates put forward by most analysts as they had predicted a net income of 3.52 billion kronor, or $530 million. Ericsson sales surged 2 percent to 47.5 billion kronor, or $7.16 billion, which is lower than analysts’ estimate of 48.78 billion kronor, or $7.35 billion.
The company saw the biggest jump in profits in North America where it reported a 223 percent increase in sales, mainly attributed to operators boosting investments on networks to enable high-speed data access by smartphones and netbooks. Chief Executive Officer Hans Vestberg said the growth was affected by component shortages. There was also significant growth in China and Northeast Asia, which grew 24 percent with Japan taking the lead.
Ericsson is the largest supplier of wireless infrastructure equipment in the world and has seen considerable growth in recent years. According to a research by Campbell, California-based Infonetics Research Inc., the company has increased its market share to 40 percent from approximately 30 percent stake it had at the beginning of 2008.
It has also expanded its partnerships with Intel Corp. and ST-Ericsson, where it is helping in the production of chip modules for notebook computers, tablets and other devices manufactured by Dell Inc. and Lenovo Group Ltd., among other companies.
Ericsson shares added 6.8 percent to 76.80 kronor, or $11.6 in Stockholm trading.
