Ericsson warns of 94% dive in earnings as sales fall

Swedish telecoms company Ericsson's shares dropped 16.7 percent in morning trading after it warned profits would be down 94 percent for the third quarter.

Officials said quarterly net income dropped to $34.8 million. Sales slipped by 14 percent.

The company has struggled recently with weak demand for its mobile network equipment and fierce competition in some markets.

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