Investors have ditched shares in Ericsson after it missed its forecast.
The Swedish mobile phone maker fell almost 9% after it reported pre-tax earnings well below a poll of Reuters analysts.
The company blamed higher-than-expected restructuring costs, a one-off charge for staff cuts and a strong Swedish krona.
Ericsson also forecast for less profit coming from some of its European network businesses.
Hans Vestberta is the Ericsson’s chief executive, says, “Services has the last two quarters suffered a negative growth, of course the currency has an impact on services and if you put that back they would have a growth.”
It was better news for Finnish rival Nokia.
Demand for new smart phones helped boost the world’s largest phone makers quarterly profit by 391 million euros.
But it’s still struggling to cope with far higher sales by Apple Inc. (Nasdaq: AAPL).
Nokia was the first to bring smart phone technology to the market more than a decade ago but has since failed to maintain its lead.
Nokia’s shares gained 7% in mid-morning trade.
Bottom line: Swedish mobile phone maker Ericsson missed forecasts taking the gloss off strong quarterly sales while Finland’s Nokia delivered a 391 million euro profit for the same period.