Sony Ericsson Triples Profits in 4Q06

Includes: ERIC, SNE
by: SA Editors

Cell phone maker Sony Ericsson reported record earnings for 4Q06, claiming profits more than tripled.eric Sales of music and camera phones drove the company's beat quarter. Net earnings improved to €447 million from €146 million during the year earlier period; pretax earnings came in at €502 million. Sales rose 64% to €3.78 billion, driven by strong growth in Asian and South American emerging markets, while total units shipments increased 61% to 26 million. Consensus forecasts were for pre-tax profit of €428 million on sales of €3.2 billion.

• Sources: Press Release, MarketWatch, Reuters
• Related commentary: Redback-Ericsson: A Competitive Threat to Juniper and Cisco?, China's Eventual 3G Rollout Could Favor EU Vendors. Conference call transcripts: LM Ericsson Q3 2006 Earnings Call Transcript
• Potentially impacted stocks and ETFs: Ericsson (NASDAQ:ERIC), Sony (NYSE:SNE). Competitors: Motorola (MOT), Nokia (NYSE:NOK). ETFs: Wireless HOLDRS (WMH)

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