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Ericsson second quarter profit drops 20 per cent, broadband demand in US stabilizes

COPENHAGEN – Swedish wireless equipment maker Ericsson says broadband demand in North America has stabilized but remains low, with second-quarter net profit falling 20 per cent to 2.1 billion kronor ($246 million). Sales in the Middle East and part of Asia grew.

Net sales in the April-June period grew 11 per cent to 60.7 billion kronor ($7.1 billion), driven by strong development in the network segment.

CEO Hans Vestberg said Friday that the mobile broadband business in North America had stabilized in the second quarter, but at a lower level than a year ago. He says the decline was partly offset by an increased pace of 4G deployments in China.

Vestberg said Ericsson was “well positioned to continue to create value for our customers in a transforming market.”