Sony Ericsson maintains profit in 2Q

Sony Ericsson continued along the road to recovery during 2Q10, reporting its second consecutive profit as rising ASPs offset lower unit shipments during the period.

 

The firm overturned a net loss of €213 million in 2Q09 with a profit of €12 million in 2Q10, as sales grew from €1.6 billion to €1.7 billion in the most-recent quarter.

 

Higher ASPs of €160 contributed to the increased sales figure, offsetting a 2.8 million drop in unit shipments to 11 million year-on-year.

 

President Bert Nordberg said shipments were lower because the firm had reduced its portfolio of devices, but said its focus on so-called “value” devices and the popularity of new smartphone models was paying off, leaving the vendor “well positioned for long term growth.”

 

Operating margins hit 2% in 2Q10, up 1% sequentially and a significant improvement on the 16% loss recorded in 2Q09, as a cost-reduction program started in 2008 begins to bear fruit.

 

Nordberg said the scheme is on-track to cut operating expenses by €880 million by end-2010.