Ericsson, parent of Sony Ericsson, has posted a gloomy set of results, brought down further by heavy restructuring and poor performance of its joint venture business.
Net income for Q4 2009 was down 82% year on year to £60m. Profit was also down 65 %year on year and sales down 13 % on year for the fourth quarter.
Over 2009 Ericsson initiated cost reduction activities targeting annual savings of £0.8bn from the second half of 2010, split equally between cost of sales and operating expenses.
The anticipated 5,000 reduction in headcount has already been exceeded and is now estimated to reach approximately 6,500.
In the fourth quarter, restructuring charges, excluding joint ventures, amounted to £0.3bn.
Last week, handset venture Sony Ericsson, offered a cautious view on 2010 market conditions, despite reporting a Q4 loss in line with expectations.
The manufacturer reported a quarterly pretax loss of £165m for the quarter ended 31December 2009.
It shipped 14.6 million phones in Q4, down from 24.2 million in the last quarter of 2008, but up slightly from 14.1 million in Q3 2009.
Meanwhile, net loss at Ericsson’s joint venture chip shop ST-Ericsson rose to £139m in the fourth quarter of 2009 from £69m in the third quarter of the same year.