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Sony Ericsson turns in profitable quarter

Tuesday 20 January 2004 09:51

Continued strong demand for mobile phones helped Sony Ericsson post a profit for the second quartrer in succession.

The Japanese-Swedish joint venture reported net income of €43m for the quarrter, which ended 31 December, compared to a loss of €69m for the same period the preivous year.

Fourth-quarter net income, however, was below the €62m milestone figure reported in the third quarter of 2003.

In the fourth quarter, Sony Ericsson shipped eight million handsets, up 13% on the same period last year. Sales increased 16% year on year to €1.4bn from €1.2bn. Third-quarter sales racked up €1.3bn.

In 2003, units shipped reached 27.2 million, compared with 22.9 million the year before.

Sony Ericsson introduced extensive cost-cutting and restructuring measures to stem losses in the first half of 2003. It attributed its strong fourth-quarter performance to the continued success of its T610 mobile phone, and to the launch of new products in Japan.

The company has now established a more solid operational platform to continue sales growth and profitability.

Sony Ericsson was established in 2001 by Ericsson and Sony.

John Blau writes for IDG News Service