Sony Ericsson Q3 financial result: loss EUR 25 million!
Q3 2008 financial results send good news for Nokia, but bad news-really bad-for Sony Ericsson. This Q3 remarks the first ever Sony Ericsson loss, at least during 2007-2008, thanks to global financial crisis and of course not-improving-net-sales. As result of 25.7 million unit shipped, the Japan-Sweden venture scores EUR 25 million loss this quarter! Well, EUR 12 million net profit actually being scored, but if the restructuring process is counted, especially in R&D, we got EUR 25 million loss as the final number. I think there will be more employees to be sacked.
Sony Ericsson President, Dick Komiyama, argues in its press release:
As expected the third quarter has continued to be challenging for Sony Ericsson. We have moved forward with our plans to align operations and resources with the consolidation of R&D facilities into a more agile and cost efficient organisational structure. As previously announced, our target remains to reduce operating expenses by Euro 300 million annually by the end of the second quarter 2009, with the full effects expected to appear in the second half of 2009.These plans are progressing in line with expectations. We are committed to executing our alignment plan as speedily as possible to ensure we have the right size and organisational structure to return the business to healthy profitability.
He then highlights several “achievements” made this quarter:
- Break even results, excluding restructuring charges, as challenging business conditions continued
- C902 Cyber-shot™ camera phone is hit model of the quarter
- First Xperia™ branded multimedia phone X1 began shipping
- Expansion of music service offering with announcement of PlayNow™ plus
How good the “achievements” then, if Sony Ericsson continue to suffer from this unlikely situation? Anyone would like to bet, when will Sony Ericsson begins to back on track and aims its healthy profitability? Will new C902 and Xperia X1 help Sony Ericsson from the deadpool threat? Before we answer all of those questions, let’s wait for Motorola and LG-the nearest competitors-to announce each financial conditions. Cross your finger, Sony Ericsson fanboys!
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