ST-Ericsson post swelling losses
The wireless chipmaker undergoing major restructuring.
| Related news: • Sony Ericsson heading the right way • ST-Ericsson to axe 600 employees |
ST-Ericsson, the wireless technology company created last year by French-Italian group STMicroelectronics and Sweden's Ericsson, said its forth-quarter loss swelled to 125 million dollar compared to 112 million dollar in the third quarter.
“2009 has been a challenging year for our industry. For ST-Ericsson, the challenge was especially great”, chief executive officer Gilles Delfassy said. “We had to strive to maintain our positioning, while also setting the foundations for sustainable and profitable growth”.
Sales for the three months to December 31 increased to $740 million from 728 the previous quarter but were lower than the pro-forma 746 million dollar for the same period last year.
Last month the joint venrure announced a plan to improve financial performance and increase its competitiveness in the market, resulting in cost-cutting of 115 million dollars a year where some 600 employees were to loses their jobs.
The firm also warned that the first quarter of 2010 should be characterized by "the usual market seasonal decline."
Last Updated (Friday, 22 January 2010 10:40)
