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Sweden's Ericsson in $260 million Q1 profit as sales slip 9 percent

Wireless equipment maker Ericsson says first-quarter profit increased to 1.7 billion kronor ($260 million) mainly because of restructuring and licensing income even as revenue fell by 9 percent compared to the same period a year earlier.

Net sales in the period dropped to 47.5 billion kronor from 52 billion kronor. Net profit in the same period last year was 1.2 billion kronor.

The world's largest supplier of mobile phone infrastructure said Wednesday that the main reason for the sales decline was lower revenue from mobile broadband projects in North America and reduced activity in Japan.

But the Sweden-based company was upbeat saying it expects "key contracts" will positively impact sales in the second half of the year.