Ericsson to take $1.2B hit for loss-making venture

Ericsson to take $1.2B hit in fourth quarter for loss-making semiconductor venture

Associated Press

STOCKHOLM (AP) -- Wireless equipment maker Ericsson says it will take a charge of 8 billion kronor ($1.2 billion) in the fourth quarter related to its loss-making joint venture ST-Ericsson, a semiconductor manufacturer.

Ericsson, based in Stockholm, says the charge includes a write-down reflecting the "current best estimate" of the fair market value of ST-Ericsson.

Ericsson's partner in the venture, Switzerland-based STMicroelectronics, announced last week it wanted out. Ericsson said Thursday it was exploring "various strategic options" for ST-Ericsson, but added that buying the remaining shares was not one of them.

Ericsson last year saw another of its joint ventures fall apart when it left the mobile handset operations it shared with Japan's Sony Corp.

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