Bloomberg News

Sony Ericsson Beats Sales Estimates While Europe Demand Suffers

October 14, 2011

Oct. 14 (Bloomberg) -- Sony Ericsson Mobile Communications AB posted third-quarter sales and pretax profits that exceeded analysts’ forecasts after strong Asian development while Western European sales suffered from withering consumer confidence.

The 50-50 handset joint venture of Sony Corp. and Ericsson AB said pretax profit fell 53 percent to 31 million euros ($42.6 million) from 62 million euros a year earlier, and compared with the average of 22.6 million euros in a SME Direkt survey. Sales rose 7.8 percent to 1.6 billion euros, higher than the 1.36 billion expected by 15 analysts in a Bloomberg survey.

Sony Ericsson, formed in 2001, has survived the era of Apple Inc.’s iPhone by focusing on smartphones based on Google Inc.’s Android platform. It posted a net loss in the second quarter as supply problems from the Japanese earthquake and decline of the feature phone market pared sales. Sony is reviewing the partnership with an eye to acquiring the rest of the business and adding it to its consumer electronics portfolio, according to a Wall Street Journal report earlier this month.

“I must say that Asia is going well for us,” Chief Executive Officer Bert Nordberg said in a telephone interview. “Western Europe is very, very weak. Western Europe is clearly suffering from consumer confidence, that’s our view.”

Sony Ericsson made a “small” profit in the third quarter, Chief Financial Officer Bill Glaser said, missing analyst expectations for net income of 16.4 million euros, according to the mean of 14 estimates in a Bloomberg survey.

--Editors: Kim McLaughlin, Toby Alder

To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net


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