London - SonyEricsson posted its
third consecutive quarter of operating and net profits in its fiscal third
quarter ending September despite a 1 percent year-over-year decline in dollar
volume for the quarter and a 5 percent sales drop for the year to date.
"Our strategy to focus on the
smarphone segment is succeeding, and smartphones now comprise more than 50
percent of our total sales," said president/CEO Bert Nordberg. The company's
ambition, he said, is "to become the global number one handset provider on the
For the third quarter, the company posted a 1
percent year-over-year decline in sales to $2.25 billion and a year-to-date
decline of 5 percent to $6.69 billion based on an exchange rate of 1.4 euros to
the U.S. dollar.
Operating income for the quarter hit $88.3 million, compared with a
year-ago operating loss of $290.9 million, and year-to-date operating income
hit $168.3 million, compared with a year-ago loss of $1.18 billion.
Net income for the quarter hit
$68.8 million, compared with a year-ago loss of $230.1 million, and
year-to-date net income hit $114.9 million, compared with a loss of $937.4
Company gross margins almost
doubled year over year to 30 percent, in part because of a companywide restructuring
Third-quarter sales in the Americas
were down 4 percent year over year to 222 million euros following a 14 percent
gain in the second quarter and a 1 percent gain in the first quarter.
Year-to-date sales in the Americas were up 3 percent to 646 million euros.
Worldwide, the company shipped 10.4 million
handsets in the third quarter, down 26 percent year over year and down 5
percent sequentially. Average selling prices in the quarter rose 34 percent
year over year to 154 euros but down 4 percent sequentially.
During the full fiscal year ending last
December, the company's worldwide unit shipments fell 41 percent to 57.1
million, sales were off 40 percent, and net losses surged.
London - SonyEricsson posted its third consecutive quarter of operating and net profits in its fiscal third quarter ended September.