Stefan Mileschin

Better than expected profits

Ericsson posted a first-quarter profit that was much better than the cocaine nose jobs of Wall Stree predicted.

The forecasts were thanks to strong growth in North America and cost cuts. Its shares rose more than three three percent to a four year high.

Profit beat expectations for a fifth straight quarter, as the Swedish company slashes costs following an industry-wide downturn in the middle of the decade and demand for 5G equipment increases.

Ericsson is one of the major rivals to Huawei, and some analysts see potential benefits from Western suspicions of the Chinese group after Washington alleged its gear could be used by Beijing for spying.

Ericsson Chief Financial Officer Carl Mellander said the Huawei situation had not yet affected orders but acknowledged security concerns could play a role in customer decisions.

“We said earlier that we don’t see it in the order books, but generally speaking the competitiveness we now have in our radio portfolio, through all technology investment we have done, matters”, Mellander said.

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