Ericsson Still Committed To Sony Ericsson JV
STOCKHOLM - Sweden's L.M. Ericsson Telephone Co. has no plans to abandon its joint venture Sony Ericsson, spokesperson Minako Nakatsuma Olofzon said Friday after the handset maker predicted that it would make a rising loss in the first quarter due to declining sales.
"We are committed to the joint venture...we haven't changed our view on that," she told Dow Jones Newswires.
Nakatsuma Olofzon said Ericsson's result will be hit by the loss at Sony Ericsson, but gave no estimates for how much its earnings will be impacted.
In a research note, ABN Amro said Friday that Ericsson's 2009 earnings per share could fall to 4.05 Swedish kronor from the current consensus of SEK4.74 as the handset maker's loss hits its bottom line.
Sony Ericsson, which is jointly owned by Ericsson and Japan's Sony Corp., earlier Friday said it expected a first-quarter pretax loss of EUR340 million to EUR390 million, far short of consensus estimates for a pretax loss of EUR151 million.
At 1320 GMT, shares in Ericsson were down 8.7% at SEK69.20, underperforming a 1.9% drop in the wider market in Stockholm.
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"We are committed to the joint venture...we haven't changed our view on that," she told Dow Jones Newswires.
Nakatsuma Olofzon said Ericsson's result will be hit by the loss at Sony Ericsson, but gave no estimates for how much its earnings will be impacted.
In a research note, ABN Amro said Friday that Ericsson's 2009 earnings per share could fall to 4.05 Swedish kronor from the current consensus of SEK4.74 as the handset maker's loss hits its bottom line.
Sony Ericsson, which is jointly owned by Ericsson and Japan's Sony Corp., earlier Friday said it expected a first-quarter pretax loss of EUR340 million to EUR390 million, far short of consensus estimates for a pretax loss of EUR151 million.
At 1320 GMT, shares in Ericsson were down 8.7% at SEK69.20, underperforming a 1.9% drop in the wider market in Stockholm.
source
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