Sony Ericsson expects euro 340-390 mn loss in Q1

Cellular handset maker Sony Ericsson Mobile Communications AB today said it expects to post a loss in the range of euro 340-390 million in the first quarter of this year, due to continued decline in sales.

The company has estimated a net loss before taxes in the range of euro 340-390 million, excluding restructuring charges between euro 10 million and euro 20 million, Sony Ericsson said in a statement.

"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 de-stocking in the retail and distribution channels," the statement added.

Besides, Sony Ericsson plans to ship about 14 million phones during the first quarter of 2009 with an estimated average selling price of euro 120.

The company is due to announce its first quarter result on April 17.

Sony Ericsson had reported a net loss of euro 187 million in the fourth quarter of last year, against a net income of euro 373 million in the corresponding year-ago period.

Earlier in January, telecommunications firm Ericsson AB had said it would slash about 5,000 jobs as part of its cost cutting initiatives, while it had reported a substantial fall in net income for the fourth quarter ended December 31, 2008.