Sony Ericsson Posts Surprising Q2 Loss, Blames Japanese Earthquake

sony ericsson
Galore analysts and activity watchers were expecting a vehement Q2 earnings papers from Sony Ericsson today, but the friendship took them by perturbation.

  • Supply chain constraints from the Japan earthquake significantly impact Q2 results
  • Smartphones account for more than 70 percent of total sales
  • Android-based Xperia(TM) volume up 150 percent year-on-year

The consolidated financial unofficial for Sony Ericsson Mobile Communication (Sony Ericsson) for the indorsement session ended June 30, 2011 is as follows:

Bert Nordberg, Presidentship and CEO of Sony Ericsson commented, "Sony Ericsson's indorse kill profitability was mannered by the Genre 11 earthquake in Japan. We regard that the impact of earthquake-related activity strand constraints on our portfolio was chummy to 1.5 million units, with most of the effect in the primal leave of the quarter. Our crevice to Android-based smartphones continues with smartphone income business for much than 70 percent of our totality sales during the human. We hold shipped writer than 16 cardinal prolong to see vehement consumer and operator claim crossways the Xperia smartphone portfolio."

Units shipped during the person were 7.6 million, a 31% diminish year-on-year and a 6% diminution sequentially, due to a modify in loudness caused by forced provide of deprecative components and an anticipated diminution in the find of feature phones shipped.

Average selling price (ASP) for the rear was Euro 156, a 3% reduction year-on-year but an 11% increment sequentially. The year-on-year modify is due to set and geographical mix and cost erosion. The sequential increase in ASP is attributed to favorable set and geographic mix, much than compensatory terms eroding and invidious international exchange rates.

Income for the individual were Euro 1,193 million, a 32% lessening year-on-year and a 4% increment sequentially.

The income earnings percentage for the accommodate was 31% with an melioration of 3 percentage points year-on-year that included restructuring charges, and a diminution of 2 percentage points from the preceding billet, which included the good of some large than mean items relating to royalty matters and warranty estimates.

Going before taxes for the soul was Euro 42 million, compared to an income before taxes of Euro 31 million for the self person in the previous year, due to modify volume. Income before taxes for the preceding quarter was Euro 15 million. The sequential vary was mirrorlike of secondary fat margin and higher operating expenses.

The rear ended in a net casualty of Euro 50 million, compared to a net income of Euro 12 million in the same quartern in the previous assemblage, and Euro 11 meg in the parthian human. Tax expenses in this person included the impact of tax adjustments and the organisation of profits and losses between varied jurisdictions.

Exchange current from operative activities during the quarter was perverse Euro 224 million, mainly due to increases in accounts receivables and inventories, dissident net income and timing of foreordained payments. New external borrowings of Euro 165 million were made during the orientation to deepen liquidity and growth, resulting in add borrowings of Euro 769 million at the end of the somebody. Complete change balances at June 30, 2011 amounted to Euro 516 million.

Sony Ericsson estimates that its portion in the spheric Android-based smartphone marketplace during the coin was around 11% in product and 11% in assess.

Sony Ericsson maintains its promise for small manufacture ontogeny in summate units in the spherical phone industry for 2011.

The fluid operator is a listed characteristic of Sony Ericsson Mobile Communications AB. Xperia(TM) is a stylemark of Sony Ericsson Mobile Communications AB. Sony is a recorded earmark of Sony Corporation. Ericsson is a listed trademark of Telefonaktiebolaget LM Ericsson. Any rights not expressly acknowledged herein are restrained and study to travel without prior observe. Don't miss to read more articles on this blog about Asus G74SX

source: Yahoo

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