Swedish telecom equipment company Ericsson has reported an 8 per cent increase in its operating profit in 2006 to $5.1 billion.

Swedish telecom equipment company Ericsson has reported an 8 per cent increase in its operating profit in 2006 to $5.1 billion.

The company’s net sales also rose by 17 per cent to SKr177.8 billion while its net income increased from SKr24.3 billion to SKr26.3 billion. However, the company’s operating margins declined from 21.8 per cent in 2005 to 20.1 per cent in 2006.

Meanwhile, the telecom equipment provider has entered into a five-year agreement with Orange for managed services cooperation in the Netherlands. Under the agreement, Ericsson will manage operations, rollout and field maintenance of the Orange mobile network.