Ericsson in profit warning due to weak broadband demand

Mobile networks company Ericsson says its third quarter earnings this year will be "significantly lower" than expectations amid weaker broadband demand.

The Swedish company says its sales fell 14 percent in the period compared to a year earlier, adding it expects no impriovemnt anytime soon.

Ericsson CEO Jan Frykhammar says "current trends are expected to continue short-term." He said Wednesday that the Stockholm-based company "will continue to drive the ongoing cost program and implement further reductions in cost of sales to meet the lower sales volumes."

Last week, Ericsson announced 3,000 job cuts in Sweden, or nearly 20 percent of its local workforce, and said it will downsize operations at several plants as part of its global plan to cut costs by 9 billion kronor ($1 billion) in 2017.