STOCKHOLM, SWEDEN: World number one mobile network gear maker Ericsson reported a much lower-than-expected core profit on Wednesday and said it expected weak margins and cautiousness from its operator clients to continue in the short term.

Earnings before interest and tax, excluding the company's loss-making joint ventures, but including restructuring charges, were 4.1 billion Swedish crowns ($604.64 million)versus a mean forecast of 7.4 billion in a Reuters poll.

Sales, at 63.7 billion crowns were also well below the forecast of 67.2 billion.