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Sony Ericsson reports continued growth in shipments, sales and profit |
masseur
Joined: Jan 03, 2003
Posts: > 500
From: Sydney, London
PM |
Sony Ericsson reports continued growth in shipments, sales and profit
15 July 2004
Tokyo and Stockholm -- Sony and Ericsson today announced the consolidated financial summary for the second quarter ended June 30, 2004 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson. Units shipped in the quarter reached 10.4 million, a 55% increase compared to the same period last year. Sales for the quarter were Euro 1,504 million, representing a year-on-year increase of 34%. Income before taxes were Euro 113 million and net income was Euro 89 million, which represent year-on-year improvements of Euro 215 million and Euro 177 million respectively.
Sony Ericsson’s Average Selling Price (ASP) decreased sequentially in line with expectation due to an increase in GSM phones in the overall product mix. The company maintained momentum from the previous quarter, and continued to grow while sustaining a consistent level of profitability. Sony Ericsson is revising its global market outlook for 2004 to approximately 600 million units from its previously stated level of over 550 million.
“Sony Ericsson is pleased to report a fourth consecutive quarter of profit. These results reflect continued strong demand for our style-oriented line-up of imaging and multi-media phones. The company has established a solid basis for sustained growth going forward. In addition to reporting successively improving profitability, we have maintained momentum in an increasingly competitive market environment. We are confident that as we continue to enhance our portfolio with exciting and innovative products, the Sony Ericsson brand will become ever stronger”, said Miles Flint, President of Sony Ericsson.
During the end of the second quarter a number of new products started shipping to network operators and retailers including Sony Ericsson’s first UMTS 3G phone, the Z1010, which has now been launched by over a dozen network operators. The K700, a high-end multi-media phone for GSM markets, and the ‘premini’, a very small and stylish PDC phone for NTT DoCoMo in Japan, have also started shipping during the quarter.
Note:
On June 30, Sony Ericsson announced it had increased its equity stake in a Chinese factory, Beijing Ericsson Putian Mobile Communications Co. Ltd., to 51%, taking over majority ownership of the facility from Ericsson. The name of the factory has been changed to Beijing SE Putian Mobile Communications Co. Ltd. (BMC). BMC operations have been fully consolidated into Sony Ericsson in the second quarter which had a positive effect on the company’s results.
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whizkidd
Joined: May 14, 2004
Posts: > 500
From: India
PM, WWW
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Was this announced in the press conference they were talking about? Anyways great news altogether!
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c96sthl
Joined: Mar 31, 2002
Posts: > 500
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Nokia just post theirs.
The report sound very serious comparing to SE which is more cheerful.
Seem like there's a reverse of fortune for this two co.
Following is the report from Reuters. SE beats all the major forecast.
STOCKHOLM (Reuters) - Swedish-Japanese mobile phone maker Sony Ericsson reported a higher than expected second quarter profit on Thursday, thanks to strong demand for its camera-phones, and revised up its global handset sales forecast.
The world's fifth biggest handset maker announced a pretax profit of 113 million euros ($139.8 million), reversing a 102 million euro loss in the same period of last year and beating market expectations of a 103 million euro profit.
The firm's pretax profit margin rose to 7.5 percent, as expected, from 7.2 percent in the previous quarter. Sales grew to 1.5 billion euros amid booming global demand for mobile phones from 1.1 billion a year earlier, topping expectations of 1.4 billion.
"These results reflect continued strong demand for our style-oriented line-up of imaging and multi-media phones," Sony Ericsson's Chief Executive Miles Flint, appointed in April, said in a statement.
The company shipped 10.4 million phones in the April-June period against a consensus forecast of 9.2 million units.
The world's biggest mobile phone maker Nokia of Finland will report its second quarter results at 1000 GMT and analysts expect it to show a 6.6 percent decline in sales because of price cuts as it fights to regain falling market share.
Analysts said the price cuts were likely to undermine the profitability of the whole industry as rivals would be forced to follow suit. Sony Ericsson's average selling price declined to 145 euros from 152 euros in the first quarter.
The company will unveil new phones at 9 a.m. GMT and analysts expect it will announce a successor to its Z1010 third generation handset capable of live video calls and the flagship P900 camera and personal digital assistant phone.
Sony Ericsson raised its forecast for the global handset market this year to 600 million units from 550 million it forecast in April. The new figure is still slightly below industry estimates of around 615-650 million units
[ This Message was edited by: c96sthl on 2004-07-15 11:26 ] | |
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Posted: 2004-07-15 08:42
