Sony Ericsson reports 247 million Euro loss before taxes for fourth quarter of 2011. Ericsson’s (OMX: ERIC B) fourth quarter result will be impacted by -1.1 billion SEK before taxes. Last October it was announced that Sony Corporation will acquire Ericsson’s 50% share in the joint venture. The transaction is expected to take place within the next few weeks and Ericsson will receive 1.05 billion Euros as a cash consideration as a part of the transaction. Ericsson is up by 2% in early trading.
The result reflects intense competition, price erosion and restructuring charges. The company shipped 9 million units in Q4, down 20% against last year and 5% vs. Q3. Average selling price was down 14% sequentially and gross margin was down 6% to 24%. The restructuring programme launched in December will lead to workforce reductions and other cost cutting measures.
President and CEO Bert Nordberg also blamed macroeconomic environment and floods in Thailand resulting in component shortages. This is a trend of sorts as Sony Ericsson was also short of components in Q2 in the aftermath of the TÅhoku earthquake.
Sony Ericssons has been moving focus towards smartphone segment and Xperia sales grew 65% year-on-year with 28 million Xperia smarthphones shipped to date. The company estimates that its share of global Android smartphone sales in Q4 was 10% in volume and 7% in value in.
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