L M Ericsson Telefon AB reported first quarter pre-tax profit up 89.9% at the equivalent of $104m on consolidated net sales up 24.2% at $2,026m, with orders up 23% at $2,739m – and the shares went into a tailspin, because analysts were looking for about 12.5% more on the profit front: the shares were off six crowns at 340 krone in Stockholm; Ericsson said its radio communications business was again the motor for growth, fuelling the tenth straight quarterly rise in orders; chief executive Lars Ramqvist said that, while there were signs of a recovery, the international telecommunications market continues to be characterised by lower investments in many countries, with depressed prices as a result; looking darkly at AT&T Corp without naming it, he added that We see how our competitors, which previously had strong domestic markets, are now searching for new markets and in pace with increased competition, we can note increased political involvement in negotiations for major projects.
