*

Operating profit 7 bln crowns vs 6.1 bln LSEG estimate

*

Net sales 56.1 bln crowns vs 59.3 bln estimate

*

India growth slowdown temporary, will bounce back, CFO

says

*

Says tariffs dampened profit margin growth

(Adds quotes from CFO interview in paragraphs 5 and 9, margin

in paragraph 6, tariffs in paragraphs 7-8)

By Anna Ringstrom and Supantha Mukherjee

STOCKHOLM, July 15 (Reuters) - Swedish telecom equipment

maker Ericsson reported on Tuesday a swing to a

bigger second-quarter adjusted profit than expected, helped by

sales growth in North America and cost cuts, but said U.S.

tariffs dampened a rise in its profit margin.

Ericsson's shares fell 3% in early trading after the result.

Operating profit excluding restructuring charges was 7.0

billion crowns ($728.5 million) against a year-earlier loss of

11.9 billion and a mean forecast of 6.1 billion in an LSEG poll

of analysts.

"We have structurally lowered our cost base and are strongly

focused on delivering further efficiencies," CEO Borje Ekholm

said in a statement.

U.S. tariffs hampered growth in its profit margins, the

company said. President Donald Trump on Saturday threatened to

impose a 30% tariff on imports from the European Union starting

on August 1.

"With production in many parts of the world, including in

North America, we will try to balance production, given the

development with tariffs," Sandström said. "But of course, we

cannot guarantee that we are immune to tariffs."

Ericsson missed sales growth estimates, with quarterly group

sales, which included a currency headwind of 4.7 billion crowns,

falling 6% to 56.1 billion crowns against a mean forecast of

59.3 billion in the poll. Organic sales, however, grew 2%.

The company said sales growth was strongest in its largest

market, North America, offsetting slowdowns in markets such as

India.

Business in the U.S. continues to benefit from a solid pace

of investments by mobile operators, CFO Lars Sandström told

Reuters.

He added that he expects the Indian market to pick up soon.

Growth in the U.S. has helped Ericsson's profit margin,

which stood at 47.5%, a jump from 43.1% in the year-earlier

period when sales were higher in low-margin markets such as

India.