SonyEricsson Posts Profit Despite Sales Decline - Twice

SonyEricsson Posts Profit Despite Sales Decline

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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 Android platform."

 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 million.

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.

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