Swedish telecommunications equipment manufacturer Ericsson (ERIC.US) announced Tuesday that its second-quarter adjusted profit surpassed expectations, driven by robust North American sales growth and cost-reduction initiatives. The company reported operating profit of 7.0 billion kronor ($728.5 million) excluding restructuring charges - a remarkable reversal from the 11.9 billion kronor loss recorded during the same period last year. This performance exceeded analysts' forecast of 6.1 billion kronor.

CEO Borje Ekholm emphasized in a statement: "We've structurally reduced our cost foundation and remain committed to further efficiency enhancements." The Americas business unit witnessed a 10% sales surge, primarily fueled by strong performance in Ericsson's largest market, North America. "Network and cloud software/service revenues grew in North America due to previously secured contracts," the company noted.

While overall group sales declined 6% to 56.1 billion kronor - falling short of the 59.3 billion kronor analyst consensus - organic sales demonstrated resilience with 2% growth. Ericsson highlighted that tariffs continued constraining margin expansion in its networks division. The company cautioned that its future outlook faces significant uncertainty stemming from tariff fluctuations and macroeconomic conditions.