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Japanese disaster hits Sony Ericsson profits


Japanese disaster hits Sony Ericsson profits


Sony Ericsson is forecasting an upturn in its fortunes in the second half of the year.

That came after the mobile phone maker posted its first quarterly loss since 2009; it was a pretax loss of 42 million euros.

The Japanese-Swedish joint venture blamed a shortage of parts due to March’s earthquake and tsunami in Japan.

The forecast for a better second half is based on new smartphone models and an easing of supply chain shortages.

Chief Executive Bert Nordberg said most of the hit from the shortage of parts was felt in the early part of the quarter, and that this would be negligible in the third quarter. “There might be some minor spillover. In our planning this is behind us,” he said.

Sony Ericsson sold 7.6 million phones in the second quarter, compared with forecasts for eight to 11 million, as earthquake-related supply chain constraints cut sales of mostly expensive models by 1.5 million phones, or some 400 million euros.

Nordberg said demand for smartphones, whose prices have started to fall to below 200 euros, remained healthy and was hitting the sale of mid-range mobile phones, a market he said he was “nearly willing to call … collapsing.”

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