Eriksson reported a bigger second quarter profit than expected on
Tuesday. The Swedish telecom equipment maker was helped by
sales growth in North America and cost cuts. Operating
profit reached about$728 million far better than the major
loss seen in the same period a year before.
Growth was strongest in its largest market, North America
, which offset a slowdown in India. However,
Ericsson said US tariffs limited a rise in its profit
margin. And it said revenue growth missed estimates as
quarterly group sales fell 60%. President Donald Trump on
Saturday threatened to impose a 30% tariff on imports from
the EU starting August 1. Ericsson said it would
try to balance production, given its presence in many
parts of the world, but the company warned it
can't guarantee it's immune to tariffs. Ericsson's share price
was down over 3.5% in early trade.