Ericsson Drops in Pre-Market Trading on Sales Decline
Ericsson (ERIC) dropped in pre-market trading after reporting a decline in quarterly sales.
The company slipped 6.3% to $11.38 a share at 8:15 am EDT.
Net sales fell 8% from a year earlier to 48 billion kronor ($6.6 billion), Ericsson said in a statement.
"Operators showed a continued good demand for mobile broadband driven by smartphone and laptop usage," CEO Hans Vestberg said. "Sales were however impacted by continued industry component shortages and supply chain bottlenecks. We estimate that this had a negative impact on our sales in the quarter by SEK 3-4 b."
Net income more than doubled to 2 billion kronor, driven by a strong improvement by Sony Ericsson.