Sony Ericsson reports first quarter 2010 results: Net Profits
Sony Ericsson has now reported their first quarter 2010 results which show a slight net profit after numerous loss making quarters which was helped by higher margins following previous cost cuts and new product launches reports an article over on the WSJ.
Sony Ericsson has reported a net profit for the 3 months up to the 31st of March of â‚¬21 million compared to a â‚¬293 million net loss the previous year and with analyst expectations of a â‚¬128 million loss.
The mobile phone maker has seen declining market share and sale partly due to their limited offering of high end mobile phones, and they haven’t seen a net profit since Q2 of 2008 but have been cutting jobs and costs over the past year.
Sony Ericsson’s Q1 gross margin improved to 31 percent up from 8 percent the previous year while operating margin also grew to 1 percent from negative 21 percent. Sony Ericsson Chief Exec, Bert Nordberg said, “Increases in both gross and operating margins show that we are on the right track to build the correct cost structure for our business organization and strategy.”