Ericsson reported a surprisingly strong pretax profit of 5.5 billion Swedish crowns ($754.4 million) in the last quarter ended December. The estimates called for a profit of 2.66 billion crowns.

It reported a pretax loss adjusted for restructuring costs of 2.1 billion crowns in the fourth quarter of 2002.

Ericsson, which used massive cost-cutting to return to a profit only in the third quarter after almost three years in the red, reported fourth-quarter sales of 36.2 billion crowns.

Revenue exceeded expectations of 34.6 billion crowns thanks to year-end spending by U.S. operators as well as continued rapid expansion by carriers in China and India. Following brighter outlooks from competitors, Ericsson reinforced hopes of a sector turnaround.

Analysts said the one weak area was the order book of 29.5 billion crowns ($4 billion), slightly below year-ago levels and fourth-quarter sales, indicating pressure on future revenue. But Ericsson was positive on sales in 2004 measured in dollars, a weakening currency, and said it was pleased with orders.

By: DocMemory
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