Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
STOCKHOLM (AP) — Networks maker Ericsson's profits jumped 49 percent in the first quarter but the results were lower than expected and the company announced a shakeup of its leadership structure to drive growth.
The Stockholm-based company on Thursday reported a net profit of 1.97 billion kronor ($244 million), up from 1.4 billion kroner, mainly due to cost cuts.
Sales dropped 2 percent to 52.2 billion kronor amid weak results in Europe and some emerging markets.
The earnings were below expectations and Ericsson shares fell 10 percent to 70.70 kronor in Stockholm after the report.
Ericsson appointed new members to its executive team and said it will reorganize the company into five business units, which CEO Hans Vestberg said "will create a leaner, more fit for purpose organization."
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
