Sony Ericsson has announced fourth quarter losses that are far larger than the market predicted, with a pretax loss of Euro 261 million, against forecasts of a Euro 77 million loss. The handset manufacturer additionally stated it expects its finances to worsen over 2009, particularly in the first half.
To counter the worse-to-come expectations, Sony Ericsson announced plans for further cost savings over 2009. It stated its target of saving Euro 300 million per annum was on track, however, it said would be increasing that by Euro 180 million annually from the end of this year.
Sales for the quarter were up 4% to Euro 2,914 million compared to the third quarter due to currency fluctuations, but down 23% on Q4 2007. Sony Ericsson shipped 24.2 million units in the quarter, down 6% on the previous quarter, with a year on year decrease of 21%.
President of the company, Dick Komiyama, said in a statement: “We foresee a continued deterioration in the market place in 2009, particularly in the first half.”
Operating losses prior to restructuring costs came to Euro 133 million, against a forecast Euro 33 million loss. This stands ion the face of last years profit for the same quarter of Euro 489 million.