ERICSSON'S 2005 PRE-TAX RESULTS LOWER THAN EXPECTED.

• Position: Brief Article

Swedish telecoms manufacturer Ericsson announced on January 31 a slight increase in profits and sales in the fourth quarter and for 2005 but its pre-tax profits and quarterly margins are lower than analysts expected. The group has not changed its outlook for 2006 and has predicted a "moderate increase" of the world market for mobile telecoms systems measured in US dollars. In a press release, the group added that they expected "strong growth" in the professional services market in 2006.

The Swedish giant recorded a rise of 51% in net profit during the 4th quarter of SEK 8.5 billion (euro 920 million) compared with 5.6 billion during the same period in 2004. Over the year it rose 37% to 24.46 billion. Profits per share rose by 54.3% to 0.54 Kronor compared to 0.35 over the quarter and 37.8% for the year to 1.53 Kronor.

Quarterly taxable profits increased from 8.7 billion to 10.1 billion...