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Ericsson's share price fell 5% as it revealed Q1 EBIT rose to 2.6bn Swedish kronor (€280m) from SEK2.1bn (€230m) a year earlier, lower than expected.
Net profit almost doubled to 2.12bn kronor from 1.21bn kronor. Operating income jumped 25% to 2.63bn kronor. Sales dropped to 47.5bn kronor from 52.03bn kronor and undershot forecasts of 50.8bn kronor, hurt by two major North American projects peaking in H1 2013 and by reduced activity in Japan.
The gross margin increased to 36.5% from 32% and topped expectations of 34%. North America sales -23% and North East Asia -19%, although there was growth in China, the Middle East and Latin America. Western Europe was flat.
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