Expects to improve in Q4 as a result of its transformation programme
Sony Ericsson has reported sales of €1.6 billion for the third quarter ended September 30, 2009, a decrease of 42% compared to €2.8 billion in the same period of the previous year. On a sequential basis, the company reported a 4% drop in sales. The company said that the sequential decline in ASP (Average Selling Price) was due to product mix and continued challenging market conditions.
For the quarter, operating loss was €193m compared to €33m in the same period of the previous year. Gross margin was 16% reflecting an improvement on a sequential basis but a drop on a year-on-year basis due to lower sales and foreign exchange fluctuations.
The company reported net loss of €164m in the third quarter of 2009 compared to €25m in the same quarter of 2008.
Dick Komiyama, outgoing president of Sony Ericsson, said: “Our business in the third quarter started to show the effects of our ongoing transformation programme. Having refreshed our brand we are now better positioned to support the launch of new products such as Aino and Satio in Q4 2009.
“We have cleared channel inventories, and have continued to realign internal resources and improve efficiency. We have also arranged external financing to strengthen the company’s financial position. Transforming the business for future growth and returning Sony Ericsson to profitability is the focus of the senior management team and will continue under the new leadership.”