Sony Ericsson sees profits jump

Mobile phone manufacturer Sony Ericsson reported a second quarter running of net profits Friday after a period of loss last year, saying it had pushed up prices by focusing on the top end of the


The Japanese-Swedish group, the fifth-biggest player in the global sector, said that in the three months to the end of June, it had made a net profit of €12 million ($15.5 billion) in contrast to a loss of €213 million for the same period last year.

Sales rose by 4.0 percent to 1.76 billion euros, the company said.

But the outcome fell short of the figures expected by analysts who had forecast a net figure of €50 billion and sales of €1.79 billion, on the basis of a poll by Dow Jones Newswires.

Sales and the net outcome had plunged in 2009. Last year the company launched a programme to reduce costs involving an extra loss of jobs amounting to nearly 2,000 cuts.

The group decided to focus on the high end of the market for handsets.

Chief executive Bert Nordberg saiod: “We are now well positioned for long-term growth.”

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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.