The Swedish manufacturer of wireless networking gear, Ericsson AB, reported Thursday weaker-than-expected profits for the third-quarter, citing declined demand for its products due to continuous fragile economic conditions.

Stockholm-based Ericsson said its net profit plunged 71 per cent to 810 million Swedish kronor (equivalent to $118 million) as compared with 2.84 billion kronor in the same period last year.

Company’s revenue slipped 5.6 per cent to settle at 46.4 billion kronor in the 3Q.

It may be noted here that analysts had projected profit of 1.97 billion kronor.

Operating profit dropped from 3.66 billion kronor to settle at 1.15 billion kronor.

Speaking on the results, analyst Michael Andersson said, “Networks are still under pressure from the economic downturn.”

Ericsson said its sales volume dropped, but network margins remained stable.

Earlier on October 15, Ericsson’s rival Nokia Siemens, had reported an adjusted operating loss of 53 million euros for the 3Q.

Shares in Ericsson slipped 7 per cent to 68.80 euros in Stockholm morning trading.