Sony Ericsson Q2 net loss at $299 million, forecast market to contract by 10 per cent
17 Jul 2009
Sony Ericsson Mobile Communications AB has posted a loss of 213 million euros (about $299 million) for the quarter, compared to a net profit of 6 million euros for the corresponding period in 2008. for the second quarter ended 30 June 2009.
The company attributed the loss to ''challenging market conditions in all regions.''
Units shipped in the quarter were 13.8 million, a decrease of 43 per cent year-on-year and a sequential decrease of 5 per cent while sales for the quarter were Euro 1,684 million, a year-on-year decrease of 40 per cent, the company said in a statement.
Income before taxes for the quarter, excluding restructuring charges, was a loss of Euro 283 million compared to a loss of Euro 370 million from the previous quarter. This is due to ongoing cost savings program which has resulted in better gross margin and operating expenses.
''As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson.'' said Dick Komiyama, president, Sony Ericsson.
''Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities.''
