Sony Ericsson bounds back into profit

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Sony Ericsson has returned to form in the first quarter of 2010, moving from deep losses in 2009 to impressive profitability.

The company made €21 million (£18.5 million) in profit for the first three months of the year, up from losses of €167 million in the previous quarter.

It was not all good news for the Swedish company, however, with revenues dropping from €1.7 billion to €1.4 billion and a 28 per cent decrease in handset shipments from the last three months of 2009.

The company claimed the shipment drop was down to the company’s decision to “streamline” its portfolio with a focus on higher end phones, such as the Xperia X10 and the Vivaz.

Bert Nordberg, president of Sony Ericsson, said in a statement: “We will continue to work through the transformation programme to ensure that we are competitive.”

The company has also announced the appointment of a new chief financial officer (CFO), Bill Glaser.

Previously Sony’s vice president and the head of the Sony Group Risk Office, Glaser officially took up the role on Friday.

“I am very pleased to be joining Sony Ericsson during these very exciting times for both the mobile handset industry and the company itself,” he said in a statement.

“Over the past few months Sony Ericsson has announced one of its strongest product portfolios ever, which has created buzz in the industry. I look forward to applying the experience I have gained at Sony and contributing to Sony Ericsson’s next phase of growth.”

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