Sony Ericsson 4Q Earnings Nearly Triple

STOCKHOLM, Sweden - Mobile phone maker Sony Ericsson's earnings nearly tripled in the fourth quarter, boosted by strong sales of Walkman phones, the company said Wednesday.

The world's No. 5 handset maker said net profit rose to 144 million euros ($174 million) in the three months ending Dec. 31, up from 55 million euros in the same period in 2004.

Quarterly sales grew 15 percent to 2.31 billion euros ($2.8 billion), from 2.01 billion euros a year earlier.

The company, a joint venture of Japan's Sony Corp (NYSE:SNE - news). and Sweden's LM Ericsson, said it shipped 16.1 million handsets in the fourth quarter, up 28 percent from the previous year.

"This was another solid quarter for Sony Ericsson, and has enabled us to finish the year with great momentum," Sony Ericsson President Miles Flint said.

Full-year profits rose to 356 million euros ($430 million), from 316 million euros a year earlier, while sales were 7.27 billion euros ($8.8 billion), compared with 6.53 billion euros in 2004.

The launch of Walkman phones has helped Sony Ericsson tap the rising popularity of devices that can carry music, and the company also moved to gain a greater share of fast-growing markets by introducing cheaper handsets in emerging markets.

Sony Ericsson said it has sold 3 million Walkman branded phones since the launch in August 2005.

"Their second half is where the growth came and if they can keep that going then it's good news for 2006," said Martin Garner, an analyst with London-based Ovum, said the result

He said he was not worried about a 10 percent drop in average selling price, saying it was still high at 143 euros ($173) and showed the company was doing better in the mid-range segments.

The company estimated that the global market for handsets grew to 780 million units sold in 2005, and predicted a 10 percent increase in 2006.