Sony Ericsson has released its results for the first quarter of 200, recording losses of EU350 million, as well as a sharp decrease in units sold.
Attributing the drop to the global financial recession, the company said it would devise further cost-saving measures to defy the slump.
Says Dick Komiyama, President, Sony Ericsson: “As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible. The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”
The company said devices shipped in the quarter totalled 14.5 million, a decrease of 35 percent compared to the same period of last.
Sales for the first quarter totaled EU1,7 billion, which represents a decline of 36 percent from the same period last year. It said sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.
Meanwhile, the company’s initial cost saving program targeting annual operating expense reductions of EU300 million by the end of the first half of 2009, including a workforce reduction of 2 000 staff, has now been completed.
The additional cost saving program announced today will include a further reduction in the global workforce of approximately 2,000 people. It is estimated that new restructuring charges of Euro 200 million will be needed to complete this program.
