Shares in Swedish telecommunications equipment group L M Ericsson Telefon AB inched up yesterday afternoon as the firm posted first half earnings above expectations. Shares rose by the equivalent of $0.90 to $21.80. The company said that despite good profitability its cashflow was negative and it may need to dispose of some businesses to free up resources and improve cash flow during the remainder of the year. The company said the adverse effects of the stronger Swedish crown reduced interim profits by about $75m, but the group turned in a healthy rise. Pre-tax profits were up 31% at $636m, well above analysts’ forcasts of $600.6m, on revenue that climbed 16% to $7,531m. The Radio Communications division provided the best performance, with revenue up 34% at $4,756m and new orders increased 20% during the half at $9,536m. Figures are converted at $0.1505 to the Swedish crown.
