Sony Ericsson lowers profit outlook

Sony Ericsson lowers profit outlookStockholm - Mobile telephone maker Sony Ericsson on Friday said it expected to post a loss for first-quarter 2009, citing "weak consumer demand."

The joint venture formed 2001 between Japan's Sony and Sweden's Ericsson also cited "de-stocking in the retail and distribution channels" as factors contributing to the loss.

The group said it expected its gross margin to decline both year-on-year and sequentially.

Net income before taxes is estimated to be a loss in the range of 340 to 390 million euros (460 to 528 million dollars). The estimate did not include restructuring charges of some 10 to 20 million euros.

The group's first quarter results were due to be presented April 17.

The group said it expected to deliver some 14 million handsets during the first quarter of 2009 with an estimated average selling price of 120 euros.

The average selling price of the group's handsets was 121 euros in fourth-quarter 2008, up from 109 euros in third-quarter 2008. (dpa)

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