Sony Corp. (NYSE:SNE - News) and Ericsson Wednesday announced the financial summary for the third quarter for Sony Ericsson Mobile Communications AB (NasdaqNM:ERICY - News), their 50:50 joint venture.

The company reported improved operating results and a continued strong increase in sales. This was achieved through positive market acceptance of new imaging phones, supply chain improvements, and increased operating efficiency.

Units shipped in the quarter reached 7.1 million, which is 42% higher year-on- year. Sales for the quarter were EUR1.305 billion, representing a year-on-year increase of 50%.

The strategic focus areas of GSM and Japanese standards posted a 73% and 130% year-on-year growth in shipments respectively. This growth is primarily driven by high demand for imaging phones in these markets.

Income before taxes was EUR39 million and net income was EUR62 million.

Sony Ericsson intends to be profitable for the second half of 2003. The improvement in profit during the third quarter is attributable to the strong performance in our Japanese business and the continued success of certain products in GSM.

Volume and sales are expected to continue to grow during the fourth quarter, but due to an increased proportion of lower priced models in the product mix we anticipate it may be difficult to sustain the current level of profitability in the next quarter.

Income before taxes and net income in the second quarter 2003 were negatively affected by EUR58 million in restructuring costs. In the third quarter additional costs of EUR3 million have been recognised as part of the earlier reported restructuring.