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Unexpected loss for Sony Ericsson blamed on the Japanese natural disaster and nuclear meltdown



  

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Friday, 15 July 2011
Mobile phone manufacturer Sony Ericsson reported a loss before tax of €42 million for the second quarter of 2011. This compares with profits of €31 million corresponding periods of 2010.

Analysts had on average expected a profit of €4.9 million, according to Reuters consensuses tracked by Swedish media.
Sales during the quarter were €1.193 million, compared with €1.757 million last year. This presents a low expectation of €1.305 million.

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During the quarter Sony Ericsson shipped 7.6 million handsets, compared with 11.0 million phones in the second quarter last year. The average selling price was €156, compared with €160 a year earlier.

Sony Ericsson's president Bert Nordberg writes in the report that the earthquake in Japan affected the company's profitability in the second quarter. The sales volume is estimated to have declined by nearly 1.5 million units by the disaster, which among other things, led to a shortage of key components.

Sony Ericsson estimates that its share of the market for Android-based mobile computer or smartphone, was 11 percent in the quarter, measured in terms of both volume and value.
The company stands by the forecast of moderate growth, measured in total units for the global handset market 2011.

Smartphones accounted for the second quarter for more than 70 percent of Sony Ericsson's sales. In the first quarter report indicated sales share to over 60 percent. Sales of the company's Xperia models, with the Android operating system, rose by 150 percent compared to second quarter last year.

“We have introduced eight new Xperia smartphones this year and we see continued strong demand from consumers and operators, "writes Bert Nordberg.

When the Stockholm Stock Exchange opened there was falls of the Stock immediately by 1.6 percent.
By Scancomark.se Team


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