Sony Ericsson posts first-quarter loss

Sony EricssonStockholm - Mobile telephone maker Sony Ericsson on Friday posted a loss for first-quarter 2009 in line with a profit warning it issued last month and announced further job cuts.

The pre-tax loss excluding restructuring costs was 358 million euros (473 million dollars), the group said. The net loss was 293 million euros compared to a net profit of 133 million euros in first-quarter 2008.

Turnover declined 36 per cent year-on-year to 1.73 billion euros due to "continued weak consumer confidence and de-stocking in the retail and distribution channels," the group said.

The Sony Ericsson joint venture was formed in 2001 between Sweden's Ericsson and Japan's Sony.

"As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand," Chief Executive Dick Komiyama said in a statement.

Some 2,000 employees were to be cut from the workforce as Sony Ericsson management planned further cost savings of 400 million euros that were to be carried out by mid-2010.

The group said it delivered some 14.5 million handsets during the first quarter of 2009, down 35 per cent year-on-year. The group estimated it had 6 per cent of the global handset market.

The average selling price of the group's handsets was 120 euros in the quarter, down 1 per cent on fourth-quarter 2008 when units cost 121 euros. (dpa)

Business News: 
General: 
Regions: