Ericsson Q2 Phone Sales Down 39%

Staff On Aug 6 2001 - 6:00am

Significantly lower sales of mobile phones, amid generally weak market conditions, hit hard at wireless equipment maker LM Ericsson during the second quarter.

Sales of phones declined 39 percent to $751 million, down from $1.24 billion in the year-ago three months. The adjusted operating loss for phones more than doubled to $426 million in the second quarter, compared with a loss of $195 million in the same period last year.

Ericsson said it sold 7.7 million phones in the second quarter, compared with 6.2 million in the same three months in 2000. This increase in unit movement, tempered by a decrease in overall sales dollars, is a reflection of a much lower average selling price per unit in the second quarter of 2001, compared with the year-ago three months.

Overall net sales in North America dropped 27 percent in the second quarter, hitting $721 million, compared with $993 million in the year-ago period.

Ericsson reported overall sales of $5.8 billion in the second quarter, down 3 percent from the $6 billion recorded in the same three months in 2000. The company reported a net loss of $1.3 billion, down from a $946 million profit in the year-ago three months.