Ericsson profits drop 71% in Q3

Ericsson profits drop 71% in Q3

Stockholm: Wireless equipment maker LM Ericsson AB says its third-quarter profits dropped 71% partly due to a lower demand from customers amid the global financial crisis.

Ericsson says net profit in the July through September period was 810 million kronor ($117.6 million), down from 2.84 billion kronor in the same three months last year.

Sales fell 5.65 to 46.4 billion kronor, from 49.2 billion in the third quarter of 2008.

Sony Ericsson, a joint venture with Sony Corp., last week posted a loss of euro164 million ($245 million) in the third quarter.

Ericsson’s outgoing CEO Carl-Henric Svanberg said Thursday that sales of network equipment declined due to “lower demand in the current tougher market environment."