Ericsson AB reports falling profits after Marconi acquisition

Ericsson AB is the world’s largest maker of mobile-phone networks and they have just come out with their latest quarterly revenue reports.

The company has posted a drop in the profits for the second straight quarter after they acquired the fixed-line telephone equipment unit of Marconi Plc.

The net income of the company fell 2 percent to 5.7 billion kronor. The sales however were up to 44.2 billion kronor from 38.44 billion kronor.

The company’s shares have also taken a beating in the market after they announced their decision to purchase of most of the U.K.’s Marconi in October. Ericsson acquired this unit to further enhance their fixed- line equipment unit to compete with companies like Alcatel and Siemens.

The deal with Marconi was their biggest acquisition ever and got them customers like Deutsche Telekom AG and Vodafone Group Plc. Market analysts are hoping that this acquisition would help them in the coming quarters.

Popularity: 4%