Sony Ericsson reports elevenfold increase in losses on 2008

Sony Ericsson 2009 financial performance improves on last quarter, but still behind on its 2008 performance

Sony Ericsson losses eleven times that of 2008

Mobile communications vendor Sony Ericsson has released its fourth-quarter and end-of-year results for 2009.

Sony Ericsson showed disastrous yearly results, with profits plummeting elevenfold to -€836m (-£733m) compared with 2008 figures of -€73m (-£64m). It recorded a quarterly profit of -€167m (-£146m) compared with -€187m (-£164m) in the same quarter in 2008.

Revenue improved over the quarter from €1.75bn (£1.53bn) to the previous quarter figure of €1.62bn (£1.42bn).

However, its year-on-year revenue performance showed the company still wrestling with the global macroeconomic climate, as financial year 2009 revenues of €6.79bn (£5.95bn) were still a whopping 40 per cent down over 2008's figure of €11.24bn (£9.86bn).

Sony Ericsson said it shipped 14.6 million units for the quarter – a sequential increase of just three per cent – but with the year-on-year figure decreasing 40 per cent, and reflecting the firm's revenue dive for 2009.

Accentuating the positive, Sony Ericsson president Bert Nordberg said that a refreshed portfolio, coupled with its business-transformation programme had started to positively impact its financial results.

"Continued cost-saving activities and resource realignment are necessary in order to build a leaner, more efficient organisation capable of meeting the demands of the changing competitive landscape," he said.

Of 2010, Nordberg said: "[The economy] remains challenging as the full benefit of cost improvements will not impact results until the second half of the year. However, we are confident that our business is on the right track.”

Sony Ericsson forecasts "a slight growth in units in the global handset market in 2010".

Sony Ericsson is a 50:50 joint venture by Sony and Ericsson set up in October 2001.