SHARE
COPY LINK

ERICSSON

Sony Ericsson profit up sharply

Sony Ericsson Thursday reported a 53.8 percent jump in net profit for the second quarter of 2007 as the Japanese-Swedish mobile telephone manufacturer enjoyed double-digit sales growth.

While the net figures were in line with the company’s own expectations, at the pretax level the numbers fell well short of market forecasts, with the firm noting that the market would remain competitive this year.

Net profit jumped 53.8 percent to 220 million euros ($302m) in the three months to June as sales rose 37 percent from a year earlier to 3.11 billion euros, Sony Ericsson Mobile Communications AB said in a statement.

Pretax profit was up 55 percent to 327 million euros ($450ms), missing consensus market forecasts, which had been for a figure of around 380 million euros according to a survey by SME Direkt.

“Sony Ericsson has continued to capture market share in a more competitive market place with a product offering that addresses a wider consumer audience than ever before,” said Sony Ericsson president Miles Flint.

“We expect the market in 2007 to remain competitive but with recently announced products such as the flag-ship Walkman and Cyber-shot models we aim to continue to grow faster than the market,” Flint said in the statement.

Sony Ericsson shipped 24.9 million mobile telephones in the second quarter, up 59 percent from a year earlier.

The company — a joint venture created by Swedish telecoms giant Ericsson of Sweden and electronics icon Sony Corp. of Japan — said it continued to capture market share in Latin America, Europe, the Middle East and Africa.

Sony Corp shares rose 20 yen to 6,350 by lunch.

“A strong contribution from Sony Ericsson should help offset a weak performance of other … affiliates and make (Sony’s) net income look reasonably good,” said Tokai Tokyo Research Center analyst Osamu Hirose.

Sony Corp. will report on July 26 its results for the fiscal first quarter ended June.

SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

SHOW COMMENTS