Ericsson's Net Drops Sharply

STOCKHOLM -- Telefon AB L.M. Ericsson Tuesday reported a 70% drop in second-quarter net profit on weakness at its networks segment and restructuring costs, despite higher sales.

Net profit plunged to 1.9 billion Swedish kronor ($319.4 million) from 6.41 billion kronor in the quarter ended June 30. Sales rose 1.9% to 48.53 billion kronor from 47.62 billion kronor.