Sony Ericsson in the red for full-year 2011

Stockholm (dpa) - Mobile phone maker Sony Ericsson on Thursday reported a 247-million-euro (317-million-dollar) loss for the full year of 2011, citing tough competition, the economic downturn and restructuring costs.

In 2010, the group made a net profit of 90 million euros.

Turnover in 2011 totalled 5.2 billion euros, down from 6.3 billion euros in the previous year. The group sold 34.4 million handsets in 2011, compared to 43.1 million mobile phones in 2010.

The report was likely the last posted by the joint venture formed in 2001 between Sweden‘s Ericsson and Japan‘s Sony. Ericsson in October said it was to sell its 50-per-cent stake to Sony. The transaction was expected to be completed in the coming weeks.

The fourth quarter also ended in a loss, with turnover down 16 per cent year-on-year to 1.3 billion euros, Sony Ericsson said.

Chief executive Bert Nordberg said the "fourth quarter results reflected intense competition, unfavourable macroeconomic conditions and the effects of a natural disaster in Thailand," referring to weaker sales in many markets due to the economic downturn and floods that caused component shortages.

Costs for a restructuring programme unveiled in December totalled 93 million euros in the quarter. The programme was to end in 2012.

Sony Ericsson continued to migrate its smartphones to the Android operating system. The group estimated that it had 10 per cent of the global market for Android-based smartphones.

The average handset price was 143 euros in the quarter, down 14 per cent compared to the previous quarter. dpa lsm ncs Author: Lennart Simonsson