For comparable units and excluding the consolidation of Ericsson Telecomunicacoes S.A. orders increased by 26 percent while net sales were on the whole unchanged. The success of the AXE system continues with high order bookings in e.g. Brazil. The business area continues its focused efforts concerning solutions for multimedia communication and the Internet. The business area as a whole shows weak but improved profitability. The process of change, designed to shorten lead times and reduce costs, is continuing.
Profitability is still weak.
The market has shown very strong interest in the business area's DECT-based radio access system. Product areas in which there is strong demand include energy systems, telecommunications cable, and microelectronics for mobile telecommunications systems. Profitability was very satisfactory. Important orders were booked within defense electronics both in Sweden and internationally. The volume of business in the telecommunications field is increasing in all markets.