Sony Ericsson Posts Large Q2 Loss
The mobile phone maker reported a significant loss due to restructuring costs, but is forecasting profits for the second half of the year.Mobile phone maker Sony Ericsson on Tuesday reported a significant loss for the second quarter of 2003, due largely to restructuring costs. But the company also reported sales increases and forecast profits for the second half of the year. Sony Ericsson, based in London, is owned by Japanese electronics giant Sony Corp. and Swedish telecom equipment mammoth Ericsson AB. The phone maker reported a net loss of 88 million euros (about $98.8 million U.S. dollars), compared with a loss of 104 million euros in the previous quarter and a loss of 83 million euros in the second quarter of 2002.
The company is incurring restructuring costs, which are related to phasing out the American CDMA business and GSM research and development activities in Munich, while increasing the focus on next-generation GSM and Japanese standards. To that end, Sony Ericsson does not expect a profit for the full year 2003, but does expect a profit for the second half of the year, officials said.