Sony-Ericsson stops the rot
Sales, shipments climb again
Sony Ericsson sales and shipments have started climbing again. The handset maker reports Q2 shipments of 6.7 million, 34 per cent up year on year, and net sales of €1.125bn for the quarter ended June 30, a 40 per cent advance on last year.
S-E claims a strong performance for its core business areas - GSM and Japanese standards. GSM shipments in Q2 were up 84 per cent and Japanese shipments up 45 per cent year on year.
The firm is still losing money and it says that restructuring will mean that it will not make a profit in 2003. It also not yet profitable on the operating front: Earnings before Bad Stuff (excluding restructuring charges and taxes ) was €-45m, better than last year's Q2 loss of €-98m, but it's still a hefty loss.
Chuck in the bad stuff and Nnt loss for the quarter soars to €-88m, of which €58m can be attributed to the costs of last month's decision to withdraw from the North American CDMA handset market and to shut its Munich research centre.
This will cost the firm another €12m at some point, but the re-org is expected to bring in €120m in annualised savings.
Since pooling handset operations into a London-based JV, Sony and Ericsson have seen their market standing slide from third to fifth place, with Samsung and Siemens overtaking them. ®
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