Thanks Canada! Ericsson stock up on Nortel acquisitions
We get Daniel and Henrik Sedin, they get Nortel profits. Shares of Ericsson were up sharply on Friday after the Swedish telecom equipment maker reported a more than four-fold jump in net income to (US) $538 million.
Ericsson has bought a whole host of Nortel assets of late, including the former Ottawa giant’s North American GSM Business and, more recently, its Multi-Service Switch business. The former was a key factor to Ericsson’s improvement.
As Bert Hill reported in The Ottawa Citizen, Nortel pretty much saved the quarter for Ericsson:
Otherwise, Ericsson had another weak quarter, with overall revenues up just two per cent to $7.2 billion and missing analyst expectations by a small margin.
Without the Nortel products, Ericsson said sales would have declined five per cent. Nokia Siemens Networks, a much weaker rival, just reported a seven-per-cent increase in sales in the same quarter.
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Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.
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