STOCKHOLM (Reuters) - Mobile phone maker Sony Ericsson posted a pretax loss in line with expectations on Friday and predicted slight market growth in 2010, a view analysts said was more cautious than that of its rivals.
Sony Ericsson, owned by Sweden’s Ericsson and Japan’s Sony Corp., reported a quarterly pretax loss of 190 million euros (165.2 million pounds). The mean forecast in a Reuters poll of 25 analysts had been for a 194 million euro loss.
Following are analysts’ comments:
“What you would take away from this is that the loss is considerably less than we expected. That gives the company a certain amount of breathing space, if they can keep losses down. So the trend is definitely going in the right direction, which is very important given the fact that the company is continuing to lose market share.”
“Overall sales of mobile phones are disappointing and it is pointing toward a weaker global market in the fourth quarter than was expected by the market. On the positive side we see that the new phones ... are well received well by the customers and they are really selling more high-end phones, and that is raising the average sales price quite a bit — a lot more than I had expected.”
“The result ex restructuring charges is actually a lot better than I expected.”
“Overall it is a positive report for the company and it is positive to see that the new phones are well received by the customers. Going into 2010 that is one of the key points for the company.”
“The outlook that the company gives is that they expect only slight growth for the overall market. I think that is slightly disappointing because other people are looking at significantly stronger growth, including Nokia.”
“The picture that is emerging is that the company is stabilizing, and its high-end phones appear to be reasonably well received because there clearly must have been a shift to higher-end phones in the mix.”
“They are on the mend, and the adjusted EBIT figure is clearly a whole lot better than consensus was looking for.”
“They are stabilizing and slowly improving, but still loss making, and still burning cash.”
“Their volumes were a little bit soft, but there was nothing dramatic in the figures and the overall market (data) was in line ... Volumes are going up and are in line with expectations.”
“The reassuring sign is that the operating margin continued to improve despite disappointing volume uplift quarter-on-quarter. These results underline that the path to recovery will be a long one in an intensely competitive environment.”