A quite bigger than expected quarterly loss was posted by the world number three mobile phone maker Sony Ericsson and the company also informed regarding its plans for further cost cuts, possibly including jobs, as it braced for even weaker demand.

It was reported by President Dick Komiyama that this year will see shrinkage of global demand by at least 5 percent. It was further informed by him that market share was less of a main concern than preserving profitability.

A 262 million Euro ($346 million) pretax loss in the three months to end-December was made by Sony Ericson. A profit of 501 million was registerd a year earlier with Ericsson and Sony venture.

Due to impact from exchange rate fluctuations, restructuring charges and write-offs, the company faced more losses. There was a rise in the sales to 2.91 billion Euro from
2.81 billion but gross margin halved to 15 percent from 32 percent.

It was informed by the company that it is on track to provide million euro in annual savings, and had initiated more cost-cutting measures aimed at saving another 180 million from end-2009.

Sales chief Anders Runevad reported, "We cannot exclude that it will also influence headcount at the company. But we have to come back to the details of that program, probably at the next report."