Ericsson boosts profits in first quarter 2005

Cost cuts and higher sales at Swedish equipment vendor Ericsson helped the company post a better than expected 73% profit increase for the first quarter 2005. Net income climbed to USD660 million from USD380 million twelve months previously as sales gained 12% to USD18.1 billion. The company said it benefited from higher demand for antennas and base stations in Latin America and Europe. Despite last year’s recovery and impressive first quarter 2005 figures, Ericsson remains steadfastly cautious on its and the industry’s prospects for the year, reiterating its belief that the mobile infrastructure market will grow by less than 5% year-on-year.