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Sony Ericsson profits slide

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11:04 CEST+02:00
Sony Ericsson pre-tax profits for the first quarter of the year are down 27 million euros compared to same quarter last year.

The Swedish-Japanese company recorded pre-tax profits of 70 million euros. Sony Ericsson's profits for the same period last year were in the region of 100 million euros.

Sales figures are also down. During the first quarter last year Sony Ericsson made 1,338 million euros but that figure has dropped to 1,238 million euros for the first quarter of 2005.

The company blames an overall downturn in the mobile-phone market for its change in fortunes.

The decline can also be attributed to the lack of new Sony Ericsson products on the market during the first quarter of 2004.

"The product line-up was mature and few new products were launched during

the period," Sony Ericsson said.

But this had since been fixed, the company said, and new third-generation (UMTS) phones, high-resolution camera phones and a music phone were to roll out during the second and third quarters of the year.

Equity market investors still felt the company should have done better in the first quarter and sold shares in the joint venture's Swedish parent company, Ericsson, in early Stockholm trading.

Ericsson's share price fell 2.9% from Thursday to 20.30 kronor.

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