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Ericsson Q2 op profit lags forecasts

Mobile telecom equipment maker Ericsson posted second-quarter operating profit and sales below market expectations on Tuesday and said it was cutting costs further to match weak demand.

Operating profit was 2.8 billion Swedish crowns ($327 million) compared to 3.6 billion in the year-ago quarter and below a mean forecast of 3.0 billion crowns in a Reuters poll of analysts.

Sales at Ericsson, the world number one mobile network equipment maker, were 54.1 billion crowns, below a forecast of 55.3 billion. The gross margin was 32.3 percent, matching the mean forecast.

An Ericsson AB employee works on 2G, 3G and 4G data networking devices during production at the company's factory in Tallinn, Estonia, on Wednesday, April 22, 2015
Peter Kollanyi | Bloomberg | Getty Images
An Ericsson AB employee works on 2G, 3G and 4G data networking devices during production at the company's factory in Tallinn, Estonia, on Wednesday, April 22, 2015

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