STOCKHOLM, Sweden—Shares of L.M. Ericsson dipped after the infrastructure provider posted a slight decline in second-quarter net profit due to its recent acquisition of Marconi Corp.
Ericsson said its profit fell 2 percent to $778 million as revenue rose 15 percent to $6 billion in the quarter. Ericsson said profits suffered a hit of $55 million due to an amortization charge related to Britain-based Marconi, which Ericsson acquired in January for $2.1 billion.
The company pointed to substantial increases in sales in Asia-Pacific, Central and Eastern Europe, the Middle East and Africa, and predicted “moderate growth” for the rest of the year compared with 2005.
“In the changing industry environment we have leveraged our scale, technology leadership and global presence to advance our leading position in mobile systems as well as in services,” said Chief Executive Officer Carl-Henric Svanberg. “We have secured a large number of key contracts during the quarter, adding to our strong business momentum.”
Shares of Ericsson lost $1.08, or 3.4 percent, to $30.88 following the report.
