Cellular handset maker Sony Ericsson Mobile Communications AB on Friday said it expects to post a loss in the range of 340-390 million
euro in the first quarter of this year, due to continued decline in sales.
The company has estimated a net loss before taxes in the range of 340-390 million euro, excluding restructuring charges between 10 million and 20 million euro, Sony Ericsson said in a statement.
"..Net sales and net income before taxes in the first quarter of 2009 continue to be negatively affected by weak consumer demand as well as de-stocking in the retail and distribution channels," the statement added.
Besides, Sony Ericsson plans to ship about 14 million phones during the first quarter of 2009 with an estimated average selling price of 120 euro.
The company is due to announce its first quarter result on April 17.
Sony Ericsson had reported a net loss of 187 million euro in the fourth quarter of last year, against a net income of 373 million euro in the corresponding year-ago period.
Earlier in January, telecommunications firm Ericsson AB had said it would slash about 5,000 jobs as part of its cost cutting initiatives, while it had reported a substantial fall in net income for the fourth quarter ended December 31, 2008.
Friday, March 20, 2009
Worst yet to come for Indian economy: Moody's
The positive movement of the st"The positive sentiment is expected to be short-lived, as India essentially only started feeling the pinch of the global downturn in the December quarter and the worst is yet to come," Moody's economy.com said in a research report.
The industrial production growth slipped into negative territory for the third time in the current fiscal by 0.5 per cent in January while exports also dropped by 15.9 per cent on a year-on-year (y-o-y) basis in the month.
However, expectations of further monetary easing measures by the Reserve Bank increased after inflation fell to 0.44 per cent for the first week of March against 2.43 per cent a week ago.
Since October, RBI has infused over Rs 4,00,000 crore in the system by cutting ratios and signalling interest rate cut.
There is also some positive news from Dalal Street as the Bombay Stock Exchange benchmark index Sensex surged 245 points in this week.
Moody's added that the Indian economy is likely to grow by 6.3 per cent with some downward risk in the current fiscal against government estimate of 7.1 per cent.
For the year 2009, India's growth rate is unlikely to exceed five per cent, but a recovery in the opening quarter of 2010 due to expected rebound of the US economy in the December quarter, should lift annual expansion to about five per cent for fiscal 2009-2010, it said.
It further added that the market sentiment is still unstable in India and so far in 2009 there has been a net outflow from the Indian stock market.
Even businesses in India continue to be troubled by liquidity concerns and tight access to credit.
"As the current focus of many firms is to refinance debt and survive the financial turmoil, investment is expected to be subdued this year," the report added.
Moody's expects long-term investors to continue to value India's underlying growth potential, but speculators who are facing liquidity constraints, are likely to stay clear of emerging markets on signs of turbulence.
"As the current focus of many firms is to refinance debt and survive the financial turmoil, investment is expected to be subdued this year," it added.
The industrial production growth slipped into negative territory for the third time in the current fiscal by 0.5 per cent in January while exports also dropped by 15.9 per cent on a year-on-year (y-o-y) basis in the month.
However, expectations of further monetary easing measures by the Reserve Bank increased after inflation fell to 0.44 per cent for the first week of March against 2.43 per cent a week ago.
Since October, RBI has infused over Rs 4,00,000 crore in the system by cutting ratios and signalling interest rate cut.
There is also some positive news from Dalal Street as the Bombay Stock Exchange benchmark index Sensex surged 245 points in this week.
Moody's added that the Indian economy is likely to grow by 6.3 per cent with some downward risk in the current fiscal against government estimate of 7.1 per cent.
For the year 2009, India's growth rate is unlikely to exceed five per cent, but a recovery in the opening quarter of 2010 due to expected rebound of the US economy in the December quarter, should lift annual expansion to about five per cent for fiscal 2009-2010, it said.
It further added that the market sentiment is still unstable in India and so far in 2009 there has been a net outflow from the Indian stock market.
Even businesses in India continue to be troubled by liquidity concerns and tight access to credit.
"As the current focus of many firms is to refinance debt and survive the financial turmoil, investment is expected to be subdued this year," the report added.
Moody's expects long-term investors to continue to value India's underlying growth potential, but speculators who are facing liquidity constraints, are likely to stay clear of emerging markets on signs of turbulence.
"As the current focus of many firms is to refinance debt and survive the financial turmoil, investment is expected to be subdued this year," it added.
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