Ericsson Reports 4Q ProfitEricsson Reports 4Q Profit

STOCKHOLM, Sweden (AP) -- LM Ericsson, the world's largest supplier of equipment for wireless phone networks, swung to a profit in the fourth quarter, citing escalating sales in Asia and the Americas.

The Stockholm-based company said Friday it had a profit of 100 million kronor ($13.6 million) in the October-December period compared with a loss of 8.3 billion kronor a year ago.

Pretax profit, which was adjusted for restructuring and one-time items, was 5.1 billion kronor ($695.7 million), compared to a loss of 2.1 billion kronor in the quarter a year ago.

Revenue for the quarter rose 29 percent to 36.2 billion kronor ($4.9 billion), but still fell short of the 36.7 billion kronor in the same quarter a year ago.

Ericsson said it expects the market for wireless telecom equipment to be flat or show slight growth in 2004.

The forecast mirrored that of rival Nokia, which said two weeks ago it expected flat to slight growth for mobile infrastructure in 2004. It is also slightly more bullish than Ericsson's earlier prediction that the mobile systems market in 2004 would be in line with 2003.

"The fourth quarter was strong but order intake and guidance were a little weak," said Greger Johansson, an analyst at Nordea Securities.

Ericsson said it expects sales in the first quarter to be down from fourth-quarter levels because of seasonal factors, but will nevertheless be moderately above year-earlier levels.