Sony Ericsson’s Restructuring Is Nearly Complete

Sony Ericsson Saito

Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) said in the second-quarter earnings release today that its latest smartphones are seeing some momentum among the “value market,” and its two-year restructuring period will be coming to a close by the end of the year. “We are now well positioned for long term growth,” said President Bert Nordberg.

Other signs are trending up, as well:

— Sales in the second quarter totaled $2.3 billion (Euro 1.757 billion), a 25 percent increase sequentially and a 4 percent year-over-year.

— Sony Ericsson shipped 11 million phones during the quarter, a 5 percent increase sequentially, but a 20 percent decrease year-over-year (due to the reduction in size of the product portfolio).

— Average selling price increased 19 percent sequentially and 31 percent year-over-year.

The company’s restructuring plan, which started in 2008 and and has resulted in 4,000 employees leaving the company, is on track to reduce annual operating expenses by $1.1 billion (Euro 880 million) by the end of the year. At the end of the second quarter, the joint venture said its cash increased to Euro 609 million.

Comments have been disabled for this post