HELSINKI – Wireless equipment maker Ericsson's fourth-quarter fell by more than a third, with strong growth in Middle East, Europe and Asia offset by a decline in North America.
Net profit in the period was 4.2 billion kronor ($506 million) while revenue increased 1 percent to 68 billion kronor compared to a year earlier.
The Stockholm-based company says that despite strong growth in consumer demand and data traffic in North America, operator investments had slowed and that it expects the broadband business in that region to remain sluggish in the short-term.
Ericsson said Tuesday that it would continue a 9-billion-kronor cost-cutting plan, expected to reach "full effect" during 2017. The program includes "proactively identifying efficiency opportunities" and the discontinuation of its modems business which it said was ahead of plan.