Last year was a rough one for Sony. They ditched Ericsson toward the end of the year to try to bring all phone production in house but really, the bigger problem was that their showing in 2011, in relation to all the other major manufacturers like Samsung, HTC, and Motorola, were sub-par at best. Now, that story will definitely change soon and hopefully the restructuring of their smartphone team will help them do just that, but the damage has, as they say, been done. Early this morning, Sony posted its earnings report for Q4 and the report lacked one major component, earnings. The gadget manufacturer posted losses to the tune of EUR 247M before taxes. That’s over $317M in US dollars and not a sum to scoff at. In any case, hopefully they get their act together over there and make 2012 the comeback year.
Loss in Sony Ericsson impacts Ericsson’s fourth quarter results
Thu Jan 19, 2012 2:31am EST
Sony Ericsson reports Q4 loss of EUR 247 million before taxes, reflecting intense competition, price erosion and restructuring charges
Results impacted by unfavorable macro economic conditions and effects from the flooding in Thailand
Ericsson’s share in Sony Ericsson’s income before taxes amounts to SEK -1.1 b. in the quarter
Sony Ericsson, the joint venture in which Ericsson (NASDAQ:ERIC) has 50% of the shares and is accounted for according to the equity method, today reports its Q4 and full year 2011 results. Sony Ericsson’s loss in the fourth quarter 2011 will impact Ericsson’s operating income with SEK -1.1 b. in the quarter.
On October 27, 2011, it was announced that Sony will acquire Ericsson’s 50% share of Sony Ericsson. The transaction is expected to take place late January to February 2012. As part of the transaction, Ericsson will receive a cash consideration of EUR 1.05 b.
Ericsson will present its fourth quarter and full year 2011 report on January 25, 2011, at 07.30am CET.