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Ericsson ponders profit

Ericsson AB CEO Kurt Hellstroem said the world's top maker of wireless networks can return to profit next year after cutting costs by as much as US$5.3 billion. Ericsson, whose shares slumped 84 percent since Jan. 1, recently raised money in a share sale to pay back debt and cover severance costs. The Swedish company will cut operating expenses to 38 billion kronor (US$4.1 billion) by the end of next year from 88 billion kronor, Hellstroem said. While Ericsson enjoys the benefits of cost savings, Hellstroem said he doesn't expect the telecommunications market to rebound for some time to come. Mobile-phone sales fell in 2001 and have sputtered this year as economic growth slowed.

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