Carl-Henric Svanberg, President and CEO of Ericsson, reported higher profits than analysts expected for the first quarter.

Ericsson’s share price halted its six-month slide on Friday (25 April) as the Swedish company’s first quarter results hiked it up by 17% to SKr14.5 (£1.22) – the biggest jump it has seen in five years.

The telecommunications equipment manufacturer issued a shock profit warning in the third quarter of last year (2007), which wiped out more than half the company’s market value before the figures on Friday.

Ericsson reported a 55% drop in first-quarter net profit year-on-year to SKr2.6 billion (£220 million) and the severe contraction of its operating margin from 19.3% last year to 9.7%.

Carl-Henric Svanberg, President and CEO of Ericsson, said in a statement: “Our business developed well in the quarter, considering the present market environment and the declining USD.

“We still find it prudent to plan for a flattish mobile infrastructure market in 2008. The ongoing cost reductions as we adjust to such a scenario are running according to plan.”

He added: “Sales are picking up in the US while Western Europe remains slow. The proportion of new network builds in high-growth markets, especially in India, is increasing. In combination with a weaker USD, this continues to put pressure on our margins.”

Ericsson remains the only profitable company in the mobile infrastructure industry, where it competes alongside rivals such as Alcatel-Lucent and Nokia Siemens.