Ericsson swings back to profit but earnings miss forecasts

|By:, SA News Editor

Ericsson's (ERIC) swung to a Q4 net profit of 6.41B Swedish kronor ($990M) from a loss of 6.46B kronor a year earlier, when results were hit by a charge related to the ending of the ST-Ericsson joint venture.

This year's Q4 profit missed consensus of 7.22B kronor.

Revenue was flat at 67B kronor vs 66.9B kronor and below forecasts of of 69.1B kronor, hurt by a slump of 19% in North America and lower activity in Japan as large coverage projects peaked in both regions.

A patent-related payout from Samsung boosted profit by 3.3B kronor and sales by 4.2B kronor.

Gross margin edged up to 37.1% from 31.1%.

Ericsson intends to pay a dividend of 3 kronor a share.

Shares are +2.8% in Stockholm. (PR)