Sony Ericsson's loss widens in Q3, announces new financing

Sony Ericsson's loss widens in Q3, announces new financing

Mobile phone maker Sony Ericsson said Friday its losses widened to euro164 million ($245 million) on sagging sales in the third quarter, and announced new financing from external investors.

The LM Ericsson and Sony Corp. joint venture said losses in the same period a year ago came to euro25 million.

Sales in the quarter fell more than 40 percent to euro1.6 billion, compared with euro2.8 billion in the same period in 2008. Units shipped in the July-September period amounted to 14.1 million, up 2 percent on the quarter, but down 45 percent on the year.

Sony Ericsson said it had strengthened its balance sheet by securing euro455 million ($676 million) in external financing facilities, primarily from parent companies Sony and Ericsson.

In April, Sony Ericsson announced it would slash 2,000 jobs, on top of 2,000 jobs cut last year, to lower costs. In total, it aims to cut operating costs by euro880 million, with full effect of the measures expected in the second half of next year.