Ericsson, the worlds No1 provider of telecomms networks annuonced record results.
Sales in the three months to the end of December rose 16% to around $6bn, against just over $5bn for the same period in 2004. A weak performance in western Europe, where sales fell 4% in the 4th quarter, were offset by strong performances in the rest of the world. Full year revenues rose 15% while net income jumped 39%.
Strong demand for second-generation GSM technology helped drive sales growth in Africa, the Middle East and Latin America, while delivery of 3G networks, including the first upgrades to speeds of around 1Mb, helped lift the performance in North America.
The million dollar question is can Ericsson continue their recent run of strong results. They probably can, albeit at a more measured pace, thanks to growing demand from the likes of India and China and their big bet on managed services, which has to be a winner going forwards.
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