Sony Ericsson profit soars

Mobile phone producer Sony Ericsson has recorded a profit before tax of 151 million euros for the year's first quarter - more than doubling the 70 million euros profit for the same period last year.

Turnover climbed to 1.99 billion euros, up from 1.29 billion euros in the first quarter of 2005.

The results bettered analysts’ expectations, with an average profit prediction of 135 million euros and a turnover of 1.87 billion euros, according to Reuters.

During the quarter, Sony Ericsson supplied 13.3 million mobile phones, compared to 9.4 million a year earlier.

“Our focus is staying where it is, which means that we are investing in camera mobiles, music mobiles and office mobiles,” said managing director Miles Flint in a webcast on Thursday morning.

“We have also spent a lot of time broadening our portfolio. Not least so we are there when consumers in expanding markets are now ready to change their mobiles with black and white screens to colour screens and simpler camera mobiles.”

This 41% increase was a result of faster growth in the market in general, said Sony Ericsson.

Global growth was continuing to exceed expectations, said the company, which now reckons that 900 million mobile phones will be sold this year.

Previously Sony Ericsson had forecast 10% growth compared to sales in 2005, when 780 million units were sold around the world.

The average sales price of a phone climbed by 4% to 149 euros. This was due to an increase in the number of more expensive phones in the product mix.

Sony Ericsson is half owned by Swedish telecoms company Ericsson, and half by Japanese electronics firm Sony. The joint owners decided on a dividend of 247 million euros, which was paid out on March 30th.

TT/The Local