Swedish telecom group Ericsson said on Thursday it would book a charge
of eight billion kronor ($1.22 billion or 923 million euros) in the
fourth quarter over its misfiring mobile chip venture ST-Ericsson.
company said it would not become the full owner of the joint venture,
after semiconductor maker STMicroelectronics last week announced it
would sell its half.
"The charge includes a writedown of assets to
reflect the current best estimate of Ericsson's share of the fair
market value of the joint venture, as well as additional charges related
to the available strategic options for the future of the ST-Ericsson
assets," the company said in a statement.
The implementation of
those options accounted for around three million kronor of the charge,
most of which would be spent next year, it said.
"Ericsson will continue to explore various strategic options for the future of ST-Ericsson assets," the company added.
mobile chip maker has never turned a profit since being formed in 2009,
and has weighed on the bottom line of its struggling Swedish parent
company, which in November said it would cut almost 10 percent of its
In the third quarter, ST-Ericsson made a loss of $190 million.