Struggling handset vendor Sony Ericsson reported a narrower than expected net loss for the fourth quarter but retained a cautious outlook for the year ahead. Net losses at the firm – a joint-venture between Sweden’s Ericsson and Japan’s Sony – were EUR167 million, compared to a net loss of EUR187 million in the year-ago period. Revenue fell to EUR1.75 billion from EUR2.91 billion in the year-earlier quarter. The numbers included a one-time charge of EUR150 million for its continuing restructuring programme, which new president Bert Nordberg said was beginning to show results. “The refreshed portfolio, coupled with the business transformation programme, has started to positively impact our financial results,” he said in a statement. The company said that new phones had helped boost its gross margin to 23 percent against a Reuters forecast of 17.7 percent.

Sony Ericsson said it expected the overall handset market, which shrank around 8 percent in 2009, to grow slightly this year. The vendor shipped 14.6 million units in the quarter and 57.1 million for the full year (2009). “The outlook that the company gives is that they expect only slight growth for the overall market,” said Nicolas von Stackelberg, analyst at Sal Oppenheim. “I think that is slightly disappointing because other people are looking at significantly stronger growth, including Nokia.”