Sony Ericsson Blames Japan Earthquakes For Q2 Loss
Not the news Sony Ericsson investors wanted to hear on Friday after the company posted a net loss of €50 million in the second quarter of 2011. Sony Ericsson cites massive supply restrictions resulting from the horrendous earthquake and aftershocks that shook Japan earlier this year.
Shipments fell 31% for Sony Ericsson from the same quarter last year to a mere 7.6 million units. Meanwhile, analysts had expected shipments to range from 8 million to 11 million handsets. Revenue for the quarter rounded out at €1.19 billion, down from €1.76 billion in the same quarter during the previous year. Sony Ericsson President and CEO Bert Nordberg had this to comment on the Q2 loss,
“Sony Ericsson’s second quarter profitability was affected by the March 11 earthquake in Japan. We estimate that the impact of earthquake-related supply chain constraints on our portfolio was close to 1.5 million units, with most of the effect in the early part of the quarter. “
The CEO seemed optimistic as the company remains positive it will see a turn around for sales towards the second half of 2011.
