Shares in Sweden's LM Ericsson fell Tuesday after the world's largest wireless equipment maker reported a 70 percent plunge in second-quarter profits on costs related to acquisitions, development and restructuring.
American Depository shares fell $1.13, or 9.2 percent, to close at $11.22.
Ericsson reported a second-quarter profit of 1.9 billion kronor ($320 million), down sharply from 6.4 billion kronor in the same period last year. Sales rose 2 percent to 48.5 billion kronor ($8.1 billion), up slightly from 47.6 billion kronor in 2007.
The Stockholm-based company reiterated its outlook for the year, saying it expects a "flattish mobile infrastructure market in 2008."
Ericsson was also hit by weaker earnings in its Sony Corp. joint venture, Sony Ericsson. Last week, the co-owned company reported a 97 percent drop in second-quarter earnings as tougher market conditions hurt its sales.
In a research note, Matthew Hoffman of Cowen and Co. kept a Neutral rating and projected a "seasonally weak" third quarter. He said Sony Ericsson will continue to be "a drag" the rest of the year.
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