Ericsson reported second-quarter sales up 14 percent from a year ago to SEK 54.8 billion, driven by demand for its mobile broadband equipment. Excluding currency effects, sales were up 27 percent year-over-year. Ericsson said it saw strong demand from Brazil, China, Germany, Korea and Russia, while the impact on the supply chain from the earthquake in Japan was less than expected. At the Networks division, sales grew 31 percent year-over-year to SEK 33.4 billion, driven by mobile broadband as well as IP network products. Global Services sales decreased 5 percent to SEK 19.0 billion due to exchange rate effects. In local currencies Professional Services sales were almost flat, while Managed Services sales were down compared to the second quarter 2010. Ericsson's operating profit, excluding its share of joint ventures, decreased to SEK 5.0 billion from SEK 5.3 billion a year ago due to a one-time restructuring charge of SEK 1.3 billion for job cuts in Sweden. Ericsson said total restructuring charges will be higher, at EUR 3 billion versus the EUR 2 billion previously indicated. Net profit improved to SEK 3.2 billion from SEK 2.0 billion, despite bigger losses at Sony Ericsson and ST-Ericsson.
