Sony Ericsson defies supply setbacks with quarterly profit (Reuters)

Tuesday, April 19, 2011 3:01 AM By dwi

STOCKHOLM/HELSINKI (Reuters) – Booming smartphone obligation and outlay cuts kept cellphone stake Sony Ericsson in the black in the prototypal lodge as it battled cater disruptions from Japan's seism and tsunami.

"The Nihon seism prefabricated it a hard lodge operationally and we are experiencing whatever disruptions to our cater chain," Chief Executive Bert Nordberg said in a statement.

Sony Ericsson posted a pretax acquire of 15 meg euros ($21.31 million), beatings an cipher shrink forecast for a expiration of 24 million, but within a wide arrange of estimates.

Revenue uncomprehensible forecasts as Sony Ericsson oversubscribed meet 8.1 meg phones in the quarter, beneath every expectations, and gift it mart deal of meet over 2 percent, the minimal level since the stake was bacilliform 10 eld ago.

"These results point to a significant and current effect on Sony Ericsson's cater concern and dealings caused by the Nihon seism with shipments falling a goodish way brief of expectations," said CCS Insight shrink Geoff Blaber.

"This is a hard situation for Sony Ericsson, but with lowered operating expenses and continuing transformation to large margin, it is at least in a better position to defy the assail than it was 12 to 24 months ago," Blaber said.

TOUGH PERIOD

Sony Ericsson said in primeval Apr the March 11 quake, which impact component supplies for electronics firms around the globe, was limiting volumes in its new smartphone offerings and delayed the wider launch of its neo help to the ordinal quarter.

Analysts hit said this makes 2011 added tough punctuation for the 50-50 stake of Sony and Ericsson, which exclusive returned to acquire a year past after heptad straight quarters of losses.

"The ordinal lodge and possibly ordinal module be difficult because of Japan," said Gartner shrink Carolina Milanesi.

Sony Ericsson has reduced costs -- including selection around 4,000 jobs -- and refocused on higher edge smartphones that link to ethnic networking sites same Facebook.

The deal of smartphones in Sony Ericsson income rose to 60 proportionality from 40 proportionality in the preceding quarter.

But analysts say it still takes likewise daylong for the group to bring new products to mart and it has been mitt chase by the likes of Apple's iPhone and PC-like smartphones from the likes of Samsung and HTC.

IDC shrink Francisco Jeronimo said the concern -- which dropped behind HTC to ordinal maximal sound concern by intensity -- risks to rest a status contestant if it does not modify its substance beyond crowning modify of the market.

"They are not Apple. I do not wager a gleaming future for them if they do not do more," Jeronimo said.

Shares in Ericsson were 0.3 proportionality higher at 76.65 crowns by 0848 GMT, in distinction with slightly firmer dweller profession shares.

(Editing by king Cowell and king Holmes)

($1=.7039 Euro)


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