Network vendor Ericsson has warned that it expects President Donald Trump's tariffs to impact the company's performance in the next quarter.

Ericsson said the situation is difficult to predict as the company announced its first-quarter earnings this week, with net profit up 61 percent.

In a call with analysts, Ericsson CFO Lars Sandström said Ericsson was expecting a one percent impact on its margins from the US tariffs next quarter.

He also noted that although Ericsson has a US production site where it can produce its equipment, it wouldn't be easy to shift between its production sites. The company has production sites in Europe, South America, parts of Asia, and the US.

"We can shift volumes between sites, but it's not a quick change, of course," Sandström told analysts. "But we won't do any big changes now because we don't know actually where we're going to land. So we will see here in the coming months if we choose to ramp up or ramp down between different sites. But it's depending on where the tariffs actually land at the end of the day here."

Following on from Sandström's comments, Ericsson president and CEO Börje Ekholm stated that the company needs to create a Western ecosystem but cautioned that this will take time. Some of the components that Ericsson uses come from China.

Despite the tariffs, Ekholm is upbeat that the vendor can hold firm.

"In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers," said Ekholm. "We are not immune, but we are resilient, with well-diversified production close to the customer and the flexibility to adapt to changing conditions over time.”

During the first quarter of this year, Ericsson reported net sales of SEK 55 billion ($5.6bn), up three percent year-on-year. The company's net profit increased by 61 percent.

Following the announcement, the vendor's share price jumped nine percent.

Ericsson highlighted that its growth in the North American market offset declines in other markets.

Ekholm put this down to stronger competition from Chinese vendors and noted that the overall market has been slower outside of North America.