Sony Ericsson swings into red; posts euro 213 mn Q2 loss

Leading mobile phone maker Sony Ericsson today swung into a loss of euro 213 million for the 3 months ended June 30, 2009 as sales slumped sharply.

The company had a net income of euro 6 million in the June quarter of 2008, it said in a statement.

Sales declined 40 per cent to euro 1.68 million in the latest quarter as compared to the same period a year ago. In the comparable period, the same stood at euro 2.82 million.

Sony Ericsson said the fall in sales was mainly on account of challenging market conditions in all regions, particularly in Latin American markets.

During the quarter, Sony Ericsson shipped 13.8 million mobile phones registering a decrease of 43 per cent year-on-year and a sequential decrease of 5 per cent.

"As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson...Sony Ericsson President Dick Komiyama said.

"The new product portfolio that integrates communications, entertainment and social media applications should contribute to a healthier top line development when shipments start later this year," Komiyama added.