Ericsson profit beats forecasts for fifth straight quarter as savings

Visitors pass through the entrance to the Ericsson AB pavilion at the Mobile World Congress in Barcelona, Spain, on Tuesday, Feb. 26, 2013. 

Simon Dawson | Bloomberg via Getty Images

Visitors pass through the entrance to the Ericsson AB pavilion at the Mobile World Congress in Barcelona, Spain, on Tuesday, Feb. 26, 2013. 

Mobile telecom equipment maker Ericsson reported a bigger of which expected rise in first-quarter operating earnings on Wednesday, adding of which the item saw particularly strong growth in North America. Boosted by the performance, the firm also raised its outlook for the global networks market.

The Swedish firm posted an operating profit of 4.9 billion Swedish crowns ($530 million), reversing a 312 million crown loss a year ago, easily topping the mean forecast for a 2.8 billion profit seen in a Reuters poll of analysts.

Speaking to CNBC’s “Squawk Box Europe” on Wednesday, CEO Borje Ekholm said strong momentum inside the U.S. could help position Ericsson as a top provider in 5G technology.

“The reality will be the U.S. market will be a leader in 5G, they were the first to launch (the item) as well as also for us, our strategy will be to work with lead customers in lead markets,” he said. “I cannot comment on competitors, although I can say of which we are a key participant inside the North American market to help operators move into 5G.”

Ericsson sells 5G telecom equipment including software as well as also radio network hardware. although according to research firm Dell’Oro Group, the telecom equipment market will be dominated by China’s Huawei, which has 29% of global market share. While Huawei’s market share has gained around 2 percentage points of share annually for the past 5 years, Ericsson’s market share has seen an annual drop of around 1%, Dell’Oro’s research found.