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Ericsson sees 71 percent net profit drop

Third quarter profits have fallen sharply for Ericsson mainly due to losses at their mobile phone joint venture Sony Ericsson, declining gear sales and heavy restructuring charges reports the WSJ.

Ericsson reported a 71 percent drop in net profit to 810 million kronor, which is roughly $118.2 million, for the 3 months up to the 30th of September form the previous year of 2.84 kronor.

These latest results include 2.7 billion kronor in cost cutting charges that they announced back in January with Ericsson saying the cost cutting program will lead to restructuring charges of 6 billion to 7 billion kronor and an annual cost reduction by the second half of 2010 of 10 billion kronor.