Mobile phone maker Sony Ericsson is reporting a steep 97 percent drop in second-quarter earnings as tougher market conditions hurt its sales.

Net profit at the joint venture of Tokyo-based Sony Corp. and Stockholm-based LM Ericsson fell to 6 million euros ($9.5 million) in the quarter from 220 million euros in the same period a year ago.

Sales were down about 9 percent to 2.8 billion euros ($4.4 million).

The joint venture had warned before Friday’s report that it expected to just break even because of tougher market conditions.