Ericsson issues 2nd Q profit warning
Published: Fri, Jun. 27, 2008 03:41PM
Modified Fri, Jun. 27, 2008 03:43PM
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closeSTOCKHOLM, Sweden -- Mobile phone maker Sony Ericsson, which has its U.S. headquarters in Research Triangle Park, warned Friday that it will just break even in the second quarter as worsening market conditions cut into sales.
Shares of the Stockholm-based company tumbled nearly 10 percent to $10.02.
Ericsson cited "moderating demand" for mid-to-high end mobile phones, as well as delays in the quarter in the shipping of new products.
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The company said it would break even before taxes.
In February, the Sony Ericsson officials said the company would add 100 local employees this year to bring its total here to 850.
Friday's news was Sony Ericsson's second profit warning this year. In March it warned of similar problems, which led the company reporting a 48-percent drop in first-quarter net profits.
Sony Ericsson reports second-quarter results on July 18.
The news comes on the heels of disappointing results from Treo smart phone maker Palm Inc., which Thursday reported a fiscal fourth-quarter loss and lower revenue which missed Wall Street expectations. The Sunnyvale, Calif.-based company said sales of cheaper Centro phones are strong, but higher-margin Treo sales have slowed.
Blackberry maker Research In Motion Ltd. also this week reported quarterly profit which missed analysts expectations.
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