Ericsson logo is displayed on the company's headquarters building in Stockholm, Sweden July 12, 2024. TT News Agency/Mikaela Landestrom via REUTERS/File Photo
STOCKHOLM (Reuters) -Swedish telecom equipment maker Ericsson reported on Tuesday a swing to a bigger second-quarter adjusted profit than expected, helped by sales growth in North America and cost cuts.
Operating profit excluding restructuring charges was 7.0 billion crowns ($728.5 million) against a year-earlier loss of 11.9 billion and a mean forecast of 6.1 billion in an LSEG poll of analysts.
"We have structurally lowered our cost base and are strongly focused on delivering further efficiencies," CEO Borje Ekholm said in a statement.
The company said sales in its Americas segment grew 10% on the back of good growth in its biggest market North America.
"In North America, sales in Networks and Cloud Software and Services increased, benefiting from previous contract wins," it said.
Group sales fell 6% to 56.1 billion crowns, against a mean forecast of 59.3 billion in the poll. Organic sales however grew 2%.
Ericsson said tariffs dampened profit margin growth at its Networks segment.
It said increased uncertainty remains on the company's outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.
(Reporting by Anna Ringstrom, editing by Stine Jacobsen)
