STOCKHOLM, Sweden-L.M. Ericsson posted $1.1 billion in net income for the fourth quarter, a 52-percent increase over the $738 million the company reported for the same quarter of 2004.
“We have concluded another good year with strong sales, earnings and cash flow,” said Carl-Henric Svanberg, president and chief executive officer at Ericsson.
The company said sales climbed 16 percent to $6 billion during the fourth quarter, compared with $5.2 billion during the fourth quarter of 2004. Ericsson added that sales were especially strong in both North and South America.
The results were in line with the company’s forecast as well as that of most telecom analysts.
The company’s stock was trading up $1.25 per share this morning at $36.32 per share.
Looking forward, Svanberg stated, “Our strong position in both services and infrastructure expands the growth potential of our business. The strong W-CDMA/HSDPA development continues. The higher HSDPA transmission speeds make a dramatic difference to the user experiences and we expect most W-CDMA operators to launch HSDPA before year-end 2006.”
In addition, Svanberg noted, “Convergence and next generation IP networks continue to be key development areas for the industry. The upgrade to fixed and mobile broadband is accelerating traffic in the world’s networks.”
