Sony Ericsson Posts Loss, Predicts Gloomy 2009

From PC World: The company made a net loss of €187 million (US$247 million) for the quarter, worse than its third-quarter loss of €25 million, it said Friday.

The figure contrasted with the net profit of €373 million Sony Ericsson made in the year-earlier quarter, and dragged it to a net loss of €73 million for the full year 2008, compared to a net profit of €1.11 billion in 2007.

Despite the end-of-year holiday shopping season, it sold only 24.2 million phones during the fourth quarter, down from 25.7 million in the third quarter and 30.8 million during the fourth quarter of 2007. Sales in the fourth quarter totalled €2.91 billion, down from €3.77 billion a year earlier, while full-year sales dropped to €11.2 billion from €12.9 billion in 2007.

Sony Ericsson blames the global economic slowdown for its problems, and expects the difficulties to continue this year, especially during the first six months.

Analysts are equally pessimistic: "Sony Ericsson's results cast a gloomy picture for 2009. Following Motorola's preliminary announcement it's already looking like the market slowed more dramatically than expected in the fourth quarter," said Geoff Blaber, analyst at CCS Insight via e-mail.

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