Shortages hold down Sony Ericsson net

Michael Carroll
18 Oct 2010
00:00
Sony Ericsson has turned a profit for the third consecutive quarter, but blames component shortages for falling short of market forecasts.
It posted quarterly earnings of €49 million ($68.4m), compared with a loss of €164 million in the same period in 2009, the company announced Friday.
But sales and profit fell short of analysts’ forecasts. Revenue tipped €1.6 billion – broadly flat with 3Q09 – but below the €1.8 billion analysts had expected, Reuters reported.
A Bloomberg analysts’ poll had predicted net income of €59 million.
“There are supply chain shortages on the market, and that has affected us,” CEO Bert Nordberg told Reuters. “Our volume did not meet expectations. That is the one reason sticking out.”
He said in a statement that the result showed performance was “stabilizing,” with smartphones now accounting for more than 50% of sales.

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