STOCKHOLM, Sweden-L.M. Ericsson said the effect of the Asian currency crisis has become increasingly noticeable in the company’s net sales, which-varying from country to country and excluding China-decreased by 27 percent in that region.
In China, Ericsson’s single largest market, there continued to be strong growth.
“Some weakening of sales was noted during the period,” commented Sven-Christer Nilsson, chief executive officer of Ericsson. “This was due in part to the downturn in a number of Asian economies and in part to problems with deliveries of the new generation of AXE.” The delivery problems were created by higher-than-expected demand for the AXE platform, the company said.
Ericsson reported 5.8-percent growth in second-quarter net sales, from $5.3 billion last year to $5.6 billion during the recently completed quarter. The six-month figures for net sales showed 14-percent growth, from $9.2 billion in 1997 to $10.4 billion this year.
Net income for the second quarter was $492.3 million, 39 percent more than $353.7 million reported for the same period last year. Six-month next income was $658 million, a 25-percent increase compared with $526.3 million halfway through last year.
