NEW YORK-Ericsson Inc., Stockholm, Sweden, reported Oct. 22 net income of 55 cents for the first nine months of 1998, up 18 percent compared with the first three quarters of last year.
In its earnings release, Ericsson did not separate out financial information for the latest complete quarter, which ended Sept. 30.
The telecommunications infrastructure and handset manufacturer also reported that income before taxes rose by 17 percent to $1.56 billion compared with the first nine months of 1997. Net sales increased by 11 percent to $16.23 billion.
Sales to China, Ericsson’s single-largest customer market, rose by 9 percent, offsetting a 29-percent decline in sales to other Asian countries, Ericsson said. Sales to Latin America rose by 29 percent and to Europe, outside of Sweden, by 15 percent. Sales in North America declined 7 percent.
Handset sales showed an 11-percent increase from the previous year. Though volumes in mobile phone sales grew 50 percent, Ericsson said price pressure has continued and is expected to result in a 25-percent to 30-percent price reduction in Ericsson’s product portfolio on an annual basis.
