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Ericsson LatAm revenues up 41% in Q4 - Regional
Swedish telecoms equipment supplier Ericsson (Nasdaq: ERIC) posted revenues of 6.8bn kronas (US$1.07bn) in Latin America for the fourth quarter of 2007, up 41% year-on-year, the company said in a statement.
Revenues in Latin America for the full year 2007 totaled 18.4bn kronas, an increase of 12% compared to 2006.

Globally, the company recorded net profits of 5.6bn kronas for the quarter, down 42% from 9.7bn kronas in 4Q06.

Ericsson's Q4 global net revenues amounted to 54.5bn kronas, flat on the 54.2bn kronas in the year-ago quarter.

"The continued rapid buildout of mobile communications in emerging markets and our significant market share gains have resulted in a higher proportion of new network builds with initial lower margins. At the same time, we have seen a decline in network expansions and upgrades in mature markets," company president and CEO Carl-Henric Svanberg said.

The company's network segment generated revenues of 37.5bn kronas in the last quarter of 2007, down 4% compared to the same quarter in 2006. Professional services totaled 12.1bn kronas, up 15% compared to 4Q06.

According to the company, Argentina and Brazil showed strong growth in the quarter in Latin America.

During 2007, Latin America experienced continued 2G expansion and accelerated 3G buildouts, Svanberg said in a conference call.

The executive also said that Ericsson expects to continue growing in the professional services market this year, adding that the company is taking some actions to safeguard Ericsson's competitive position in the market since the company expects a flattish mobile networks market this year. The company announced a global cost reduction plan of 4bn kronas for 2008.
http://www.bnamericas.com/news/telecommunications/Ericsson_LatAm_revenues_up_41*_in_Q4