Ericsson 2Q06 results

Ericsson posted a 2% drop in 2Q06 net profit to $781m, hit by an amortization charge of $55m related to Marconi integration and fueled by a strong performance at its Sony Ericsson mobile phone handset joint venture, while sales rose 15% to $ 6bn. If the profit figure beats expectations, sales were slightly lower than analysts had forecast. The operating margin came in at 18.7%, beating analyst expectations. Sales were good in Europe (+26%) and APAC (+55%), but weak in NA ( down 42%)

Ericsson said the GSM/WCDMA market is expected to grow moderately in 2006 compared to 2005.