Sony Ericsson Swings to Fourth-Quarter Loss

The mobile phone maker Sony Ericsson reported a fourth-quarter loss of 187 million euros amid contracting consumer demand and as units shipped in the quarter fell 21%.
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Sony Ericsson

reported a fourth-quarter loss of 187 million euros (245 million) amid contracting consumer demand and as units shipped in the quarter fell 21% to 24.2 million.

Fourth-quarter sales declined 23% to 2.9 million euros on lower volumes caused by the global economic slowdown, a slackening of demand and decreased availability of credit, the company said Friday. The company reported year-earlier earnings of 373 million euros.

The mobile phone maker said its average selling price in the fourth quarter was 121 euros, a sequential increase but a drop from a year earlier. The company's estimated market share for the quarter was maintained at about 8%.

The

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joint venture said it initiated an additional 180 million euros of annual cost savings. It estimates the cost of the additional restructuring will be covered by previously announced charges of 300 million euros.

Sony Ericsson estimates the 2008 global handset market as being about 1.19 billion units, or roughly 6% growth from 2007, compared with its previous forecast of about 10%. The company forecasts the global handset market to contract in 2009 and that the industry average selling price will continue to decline.