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.