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Ericsson Shares Tumble on Forecast Revision

Telecom equipment maker Ericsson said on Tuesday its planning assumptions were now at the lower end of a forecast range for fourth-quarter sales, sending its shares tumbling.

Ericsson, the world's biggest mobile network maker, repeated a planning assumption of fourth-quarter sales of between 53 billion and 60 billion Swedish crowns ($8.4 billion to $9.6 billion). That assumption was first made when the company issued a third-quarter profit warning last month.

The company said the networks market in the United States and Europe had tightened and cited political unrest in some emerging markets as a factor for the network market as well.

Ericsson said the longer-term market outlook remained unchanged. The planning assumptions were in a document published as Ericsson management began an investor conference in New York.