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Ericssonâ€™s net profit climbs 8.2%

02 February 2007 14:37 (UTC +04:00)

Swedish mobile phone giant Ericsson, on Friday posted an 8.2 percent rise in profits in 2006 but disappointed the market by revising downwards its forecast for 2007, the APA reports. Ericsson reported a net profit of 26.3 billion 2.9 billion euros (3.8 billion dollars), up 8.2 percent on the previous year, lifted by strong sales and robust earnings from its five-year-old joint venture with Sony. It expects growth of 4% to 6% in systems for the key GSM/WCDMA mobile phone technologies compared to the 5% to 9% target previously forecast.
That joint venture, Sony Ericsson, the worldâ€™s fourth biggest mobile phone maker, last month announced it had tripled its net profit in the fourth quarter of 2006 to 447 million euros. The company gained market share owing to its successful high-end range of phones, enabling it to fight off intense price pressure in Asia.
Ericsson said its turnover rose by 17 percent in 2006 to 177.8 billion kronor from 151.8 billion a year earlier.
Sales in the fourth quarter of 2006 alone were 53.7 billion, a 17.5-percent increase on the same quarter in 2005. /APA/