Sony Ericsson make bumper Loss in the last quarter on 2011Thursday, 19 January 2012
Mobile phone manufacturer Sony Ericsson reported a loss before tax of EUR 247 million, approximately Skr 2.2 billion for the fourth quarter of 2011. That compares with profit of EUR 35 million in the corresponding period the year before.
Turnover amounted to Euros 1.288 million, compared with 1.528 million euros a year earlier.
Ericsson last fall sold half of its stake in Sony Ericsson to Sony for the corresponding some Skr 9 billion.
During the quarter, Sony Ericsson delivered 9.0 million phones, compared with 11.2 million phones in the fourth quarter of 2010. The average selling price rose to 143 euros from 136 euros a year earlier.
AdvertisementThe quarterly result was still burdened by a so-called restructuring charge of EUR 93 million. In addition, reflecting the loss is also increased competition and price cuts, write Sony Ericsson in the report.
Furthermore, the results was affected by adverse macroeconomic conditions and the effects of floods in Thailand, according to Sony Ericsson.
As sales of Ericsson's half share is not yet formally completed - the deal is expected to be completed in late January or February - charged Sony Ericsson Ericsson's operating loss for the fourth quarter by Skr1.1 billion.
Sony Ericsson's losses came as a crushing unexpected issue. Analysts had, according to Reuters, on average expected a profit of EUR 41.7 million.
Although the total deliveries decreased according to CEO Bert Nordberg, commenting on the delivery of Sony Ericsson's Android-based smartphones, the Xperia series increased by 65 percent in the fourth quarter compared with the corresponding periods of 2010. In total, the company delivered 28 million Xperia phones, and they stood in the fourth quarter for approximately 80 percent of Sony Ericsson's total sales.
Sony Ericsson estimates its market share for Android phone to be around 10 percent by volume and 7 percent in value during the fourth quarter. The company expected that the global Smartphone market grew by 60 percent to 463 million units in 2011, and believe in continued strong growth in 2012.
By Scancomark.se Team
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