The gross loss including restructuring costs rose from 83 million to 1.043 million euros, representing an increase of more than 1,100 per cent.
The operating loss was multiplied by 800 to stand at 1,018 million euros. Sales in this period were 6.788 million euros, up 40 percent from a year earlier. mSony Ericsson sold 57.1 million mobile phones in 2009, 40 percent less, and the average selling price per unit rose from 116 to 119 euros.
In the fourth quarter, net loss was reduced by 11 percent, from 187 to 167 million euros. The gross loss including restructuring charges, increased from 261 to 190 million euros.
The operating loss shrank by 31 percent and stood at 181 million euros. The turnover fell 40 percent, from 2.914 million to 1,750 million euros.
The number of phones sold fell by 40 percent to 14.6 million, while the average selling price per unit was 120 euros, a euro less than the same period in 2008.
In 2008, Sony Ericsson secured external funds worth 455 million euros to strengthen its balance sheet and improve its liquidity, of which 350 million has been guaranteed by the parent companies and 50 percent have been used only for the time 255 million total.
Sony Ericsson reported that continues with his plan, launched in mid-2008 to reduce costs amounting to EUR 880 million, calculating the return to profit in the second half of 2010.
Since the launch of this program the company has reduced its workforce by 2,500 employees to 9100 employees and has used 339 million euros in restructuring charges, expected to be kept within the total 500 million previously estimated.
Sony Ericsson’s president, Bert Nordberg, said in a statement the improvement experienced by the Japanese-Swedish consortium in the fourth quarter, which followed an updated portfolio and the positive effects of the changes driven by the company.
“The activities of cost reduction and restructuring of resources are necessary to build a leaner and more efficient organization capable of facing the demands of a changing competitive landscape,” said Nordberg, confident that the company is on the “right way”.
Sony Ericsson estimated that global mobile phone market fell 8 percent last year and its market share in the fourth quarter was approximately 5 percent.
By 2010 the Japanese-Swedish consortium forecast a slight increase in the total sales of mobile phones.
Tags: Sony Ericsson