Sony Ericsson post loss

Mobile phone maker Sony Ericsson on Friday said its loss in the fourth quarter narrowed 9 per cent from a year ago to euro167 million ($235 million), as improved margins and lower costs offset a slump in sales. The figure compared with a euro187 million loss last year, but sales fell 40 per cent as the joint venture between LM Ericsson and Sony Corp. was caught unprepared by consumers' rapid shift to touch screen phones. Bert Nordberg, Sony Ericsson's new president, said that although he expects 2010 to be a challenging year, he is confident the group's cost-cutting measures and move toward more mid- and high-end products has put his company 'on the right track.' 'We will continue to focus on returning the company to profitability by establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio,' he said, pointing to recently announced products such as its Android-based phone XPERIA X10. Units shipped in the October- December period amounted to 14.6 million units, up 3 per cent from the third quarter but still down 40 per cent from the same period a year ago. For the full year 2009, the net loss amounted to euro836 million, compared with a previous profit of euro73 million. In 2008, Sony Ericsson launched a cost-cutting program under which it had by the end of 2009 slashed its global workforce by around 2,500 people to 9, 100. Sony Ericsson, which aims to cut operating costs by euro880 million, reiterated that the full effect of the measures are expected in the second half of this year.