Ericsson Q1 Profit Down - Quick Facts

(RTTNews) - Swedish telecom equipment maker Ericsson (ERIC) reported that its first quarter net income declined to 2.9 billion Swedish kronor from 3.2 billion kronor in the same quarter last year. On a per share basis, net income was 0.88 kronor down from 0.96 kronor in the previous year.

But group organic sales for the first quarter grew by 3% year-over-year, driven by Networks in North America and in Europe and Latin America. Quarterly net sales rose to 55.1 billion kronor from 49.8 billion kronor in the previous year.

Ericsson said it is currently engaging with the Department of Justice regarding the breach notices it issued relating to the Deferred Prosecution Agreement. The resolution of these matters could result in a range of actions by DOJ, and may likely include additional monetary payments, the magnitude of which cannot at this time be reliably estimated.

It was actually improved compliance program that allowed the company to identify the misconduct in Iraq that started at least back in 2011, Ericsson said.