Sony Ericsson Q3 profits more than double

12-10-2006

by Charlie Taylor

Sony Ericsson has announced pre-tax earnings of EUR433 million for its fiscal third quarter, up 187 percent year-on-year.

This marks a profit increase of EUR222 million compared to the EUR211 million recorded during its last fiscal quarter and a rise of EUR282 million versus the same three-month period a year ago.

Sony Ericsson, which is the world's fourth largest mobile manufacturer, reported sales of its Cyber-shot and Walkman phones had been particularly strong during the quarter.

Sales for the period amounted to EUR2,913 million, representing a year-on-year increase of 42 percent. Net income was EUR 298 million, compared to EUR104 million last year.

The firms said it shipped 19.8 million mobile phones during the three-month period, a 43 percent increase compared to the same quarter last year, and approximately double the market growth rate.

"The third quarter saw Sony Ericsson reap the success of hit products announced earlier in the year such as the high-end K800 and W810, mid-range K610 and lower-priced W300 and K310. Our strategy of using flagship products to give Sony Ericsson a lead position within a product category such as imaging with the Cyber-shot megapixel camera phone or music with the Walkman line-up is creating a halo effect over lower-end models in the same category and encouraging new users to try our phones," said Miles Flint, president of Sony Ericsson.

The mobile phone manufacturer said it believes that the global handset market will total more than 950 million units this year. On this basis the company believes it has outperformed the growth rate in the sector and gained more than a 1 percentage point market share this quarter, to reach a global market share of approximately 8 percent.

The company, which is a joint venture between Japan's Sony and Sweden's Ericsson, celebrated its fifth anniversary on October 1 2006. It currently employs over 7,000 people worldwide in Europe, Japan, China and America.