Sony Ericsson makes another loss

Mobile phone manufacturer Sony Ericsson has reported a
smaller-than-expected three-month loss. The company owned by Sweden's
Ericsson and Japan's Sony lost 164 m euros ($245 m; £150 m) from
July to September. The losses were better than the net loss of 213 m
euros made in the previous three months, but wider than the 25 m
euros in the third quarter of 2008. The company said the figures were
starting to show the effects of its transformation programme. It
announced 2 ,000 job cuts in April in addition to the 2 ,000 jobs it
had cut the previous year. Fresh investment It expects to see the full
value of its programme to cut 880 m euros a year from its costs in the
second half of next year. Its sales in the third quarter were up 2 %
from the previous quarter, but down 45 % compared with the same
period last year. In its statement, Sony Ericsson said it would be
receiving fresh investment backed by its owner companies. It
predicted that the global mobile phone handset market will contract
10 % in 2009 from the 1 ,190 million sold in 2008. On Thursday, its
big rival Nokia reported a net loss of 913 m euros for the same
period, hit by falling sales and one-off items.