Sony Ericsson quarterly profit fades 97 per cent as sales slump nine per cent

By The Associated Press

STOCKHOLM, Sweden - Mobile phone maker Sony Ericsson is reporting a steep 97 per cent drop in second-quarter earnings as tougher market conditions hurt its sales.

Net profit at the joint venture of Tokyo-based Sony Corp. and Stockholm-based LM Ericsson fell to six million euros (US$9.5 million) in the quarter from 220 million euros in the same period a year ago.

Sales were down nine per cent to 2.8 billion euros ($4.4 billion).

The joint venture had warned before Friday's report that it expected to just break even because of tougher market conditions.