Sony Ericsson Issues Profits Warning

Sony Ericsson has issued a brief statement warning that its net sales and net income before taxes in the first quarter of 2009 continue to be negatively affected by weak consumer demand as well as cut backs in stocks by the retail and distribution channels.

Although final results may differ, Sony Ericsson plans to ship approximately 14 million phones during the first quarter of 2009 with an estimated ASP (average selling price) of EUR 120. Gross margin is expected to decline both year-on-year and sequentially.

The firm is also projecting a loss in the range of EUR 340 - 390 million (US$459 million - US$526 million), excluding restructuring charges in the range of EUR 10 - 20 million. In Q4 of 2008, the company posted a loss of EUR 261 million (US$353 million).

Sony Ericsson will announce its first quarter, 2009 financial results on April 17th.

Posted to the site on 20th March 2009