Sony Ericsson (ERIC) Sees Weaker Q1 Sales on Slowing Customer Demand

March 20, 2009 7:25 AM EDT

Sony Ericsson Mobile Communications AB ("Sony Ericsson") announced that its 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.

Although final results may differ, Sony Ericsson plans to ship approximately 14 million phones during the first quarter of 2009 with an estimated ASP (average selling price) of EUR 120. Gross margin is expected to decline both year-on-year and sequentially. Net income before taxes is estimated to be a loss in the range of EUR 340 - 390 million, excluding restructuring charges in the range of EUR 10 - 20 million.

Sony Ericsson will announce its first quarter, 2009 financial results at 07.30 UK time/08.30 CET on April 17.

Telefonaktiebolaget LM Ericsson (Ericsson) (Nasdaq: ERIC) is a supplier of network equipment and related services to telecom operators. Ericsson operates in four segments: Networks; Professional Services; Multimedia; and Phones, includes the 50/50 joint venture with SONY Corporation, Sony Ericsson Mobile Communications. (NYSE: SNE)

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