(Telecompaper) Ericsson reported third-quarter sales up 9 percent year-on-year to SEK 57.6 billion. Sales for comparable units, adjusted for currency effects, grew by 3 percent annually and 2 percent quarterly. The growth was mainly driven by the Middle East, China, India and Russia, and was partly offset by a sales decline in North America. The company's gross margin increased to 35.2 percent from 32.0 a year ago, driven by an improved business mix, higher IPR revenues and lower restructuring charges. Operating profit still fell to SEK 3.9 billion from SEK 4.2 billion in the year-earlier period, due to a revaluation of unrealized hedge contracts of SEK 1.0 billion. Ericsson said it also faced higher operating expenses related to modems and the acquired Mediaroom business as well as a planned ramp up of investments in IP. Net profit fell 13 percent to SEK 2.6 billion, and operating cash flow was a negative SEK 1.4 billion. Ericsson said it was benefiting from mobile broadband contracts in Greater China, improving conditions in Japan and India and a return to growth in parts of Europe. Sales slowed in North America as operators there focused more on cash flow optimisation.