Ericsson Misses Estimates as Carriers Curb Spending

Ericsson AB, the world’s largest maker of mobile-phone networks, reported second-quarter profit that missed analysts’ estimates as carriers curbed spending to cope with a slowing economy. The stock fell to a 3 1/2-year low.

Net income declined 64 percent to 1.11 billion kronor ($158 million), Stockholm-based Ericsson said today. Analysts predicted 1.64 billion kronor, the average of estimates compiled by Bloomberg. Gross margin, the percentage of sales left after costs of goods sold, narrowed to 32 percent from 37.8 percent.