Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) is dragging Sony down. We knew from the handset maker’s earnings last week that quarterly sales divedbombed nine percent since last year. Today’s earnings from Sony in Japan show the JV’s income contribution to the electronics giant is down from 17.1 billion yen ($159.3 million) to just 0.6 billion yen ($5 million) year-on-year.

Blame the Sony Ericsson result for Sony pulling in 89.8 percent less from joint ventures this year than last, at just 2.2 billion yen ($21 million). So now Sony is knocking 60 billion yen ($559 million) off the 70 billion yen ($652 million) JV income forecast it gave in May, which now stands at just 10 billion yen ($93.21 million) - credited mainly to the Sony Ericsson performance.

The handset maker last week announced 2,000 job cuts when it said profit nosedived from €133 million ($211 million) to €6 million ($9.5 million). Sony today blamed a less favourable product mix (especially in Europe), increased competition, higher R&D costs, slowing market growth for mid- and high-end handsets and currency fluctuations. It helped Sony to a 39 percent fall in quarterly group operating profits (see Sony earnings).

• Earnings: Sony’s Games Unit In Profits; SonyBMG Sales Decline 6 Percent
• Updated: Earnings: Sony Ericsson Breaks Even; Profit Plummets 97 Percent; 2,000 Job cuts
• Analysts Lower Worldwide Market Forecast For Cellphones