Stockholm - Mobile telephone maker Sony Ericsson on Friday reported a fourth-quarter loss and lower sales, describing the 2008 business year as "tumultuous" in the wake of the global economic downturn.

The group posted a pre-tax loss excluding restructuring costs of 133 million euros (174 million dollars) for the quarter, compared to a pre-tax profit of 501 million euros for the corresponding business period in 2007.

Restructuring costs in the quarter were 129 million euros.

Fourth-quarter turnover was 2.91 billion euros, down 23 per cent year-on-year, the joint venture formed 2001 between Japan's Sony and Sweden's Ericsson said.

Sony Ericsson said it sold 24.2 million handsets in the quarter, down 6 per cent on third-quarter 2008 and a 21-per-cent decline year- on-year.

Sony Ericsson chief executive Dick Komiyama said the economic downturn had "greatly affected" the mobile telephone market, adding that "the fourth quarter continued to be very challenging."

Komiyama said the group predicted "a continued deterioration in the market place in 2009, particularly in the first half."

For full-year 2008, the group posted a net loss of 73 million euros compared to a net income of 1.1 billion euros for 2007.

The average selling price of the group's handsets was 121 euros, up from 109 euros in third quarter 2008. The average selling price was 123 euros in fourth quarter 2007.

The group's share of the global market was estimated at 8 per cent, the same level as in the third quarter 2008.

Sony Ericsson lowered its earlier estimate for the global handset market in 2008 to 1.19 billion units, up some 6 per cent on 2007. Earlier it estimated growth at 10 per cent.

The average selling price for handsets in 2009 was also expected to decline. (dpa)