-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Dtj8yem/k6JWfK7JMcu++GB+HlNgaOI/rqgWOnznpO59n8q0A4OLXg4/ZACHzSF8 9VN1By47MzYrFLRQ8TOy9w== 0001191638-07-002514.txt : 20071011 0001191638-07-002514.hdr.sgml : 20071011 20071011060720 ACCESSION NUMBER: 0001191638-07-002514 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20071011 FILED AS OF DATE: 20071011 DATE AS OF CHANGE: 20071011 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SONY CORP CENTRAL INDEX KEY: 0000313838 STANDARD INDUSTRIAL CLASSIFICATION: HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651] IRS NUMBER: 000000000 STATE OF INCORPORATION: M0 FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06439 FILM NUMBER: 071166300 BUSINESS ADDRESS: STREET 1: 7-1, KONAN STREET 2: 1-CHOME, MINATO-KU CITY: TOKYO STATE: M0 ZIP: 108-0075 BUSINESS PHONE: 0367482180 MAIL ADDRESS: STREET 1: 7-1, KONAN STREET 2: 1-CHOME, MINATO-KU CITY: TOKYO STATE: M0 ZIP: 108-0075 6-K 1 son200710116k.txt SONY ERICSSON Q3 RESULTS Form 6-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of October 2007 Commission File Number: 001-06439 SONY CORPORATION (Translation of registrant's name into English) 1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN (Address of principal executive offices) The registrant files annual reports under cover of Form 20-F. Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F, Form 20-F X Form 40-F __ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934, Yes No X If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-______ SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SONY CORPORATION (Registrant) By: /s/ Nobuyuki Oneda (Signature) Nobuyuki Oneda Executive Vice President and Chief Financial Officer Date: October 11, 2007 List of materials Documents attached hereto: i) Press release announcing Sony Ericsson Q3 Results Sony Ericsson PRESS RELEASE October 11, 2007 Continuing strong momentum at Sony Ericsson Q3 Highlights: - Year-on-year volume growth of 31% - Continued volume growth driven by profitable lower priced phones - Good market reaction to new slider form-factor of W580 Walkman(R) phone - Successful launch of Sony Ericsson P1 smartphone The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2007 is as follows: Q3 2006 Q2 2007 Q3 2007 ________ _______ _______ Number of units shipped (million) 19.8 24.9 25.9 Sales (Euro m.) 2,913 3,112 3,108 Gross Margin (%) 31.5% 29.6% 30.7% Operating Income (Euro m.) 427 315 393 Operatomg Income (%) 14.6% 10.1% 12.7% Income before taxes (Euro m.) 433 327 384 Net income (Euro m.) 298 220 267 Average Sales Price (Euro) 147 125 120 Units shipped in the quarter reached approximately 26 million, a 31% increase compared to the same period last year. Sales for the quarter were Euro 3,108 million, representing a year-on-year increase of 7%. Income before taxes for the quarter was Euro 384 million, representing a year-on-year decrease of 11%, which reflects the exceptional third quarter the company experienced in 2006. Net income for the quarter was Euro 267 million. In line with Sony Ericsson expectations, the increase in low- and mid-tier priced phones in the product portfolio in the third quarter resulted in a decline in Average Selling Price (ASP) to Euro 120. "The quarter has seen Sony Ericsson continue to generate significant year-on-year volume growth with a portfolio of products spread across the widest variety of price points in the company's history. Low- and mid-tier priced models such as the W200 Walkman(R) phone and simple 'talk and text' range of phones have been key volume drivers during the quarter, while the high-spec P1 smartphone and W580 slider Walkman(R) phone have been well received and strengthen the portfolio at the higher-end," said Miles Flint, President of Sony Ericsson. "We are confident that the remainder of the year will see us further capitalize on this new broader portfolio with flag-ship Walkman(R) phone models such as the W910 and W960 plus the much anticipated 5 mega-pixel Cyber-shot(TM) K850 camera phone launching in time for the holiday season." During the quarter Sony Ericsson strengthened its position in North America and Latin America as well as Western Europe due to well accepted Walkman(R) and Cyber-shot(TM) phones. Previously announced activities to further strengthen the overall portfolio such as manufacturing and R&D activities in India, plus an R&D licensing agreement with Sagem continue to progress as planned. Sony Ericsson forecasts that the 2007 global handset market will be above 1.1 billion units. The company gained around 1% of market share compared with the same period last year and finished the third quarter at over 9%. As communicated at the beginning of the year, a capital redemption of total Euro 300 million was paid to the parent companies in the quarter. During the quarter Sony Ericsson announced that the company's president Miles Flint will step down as of November 1st 2007. Effective 1st November Hideki 'Dick' Komiyama, currently Director, Chairman, Sony Electronics Inc., USA, and EVP Electronics Marketing and Sales Strategies, Sony Corporation, Japan, will succeed Miles Flint, who will remain as Executive Advisor to Dick Komiyama until the end of December 2007. Dick Komiyama will be based at Sony Ericsson's offices in London. Invoices from Ericsson amounted to Euro 152 million in the quarter, which was offset from the advance payment made by Sony Ericsson to Ericsson in the first quarter of 2007. WALKMAN(R) and Cyber-shot(TM) are trademarks or registered trademarks of Sony Corporation. EDITOR'S NOTES: Financial Statements and Additional Information: Financial Statements: Consolidated Income Statement Consolidated Income Statement - Year-to-Date Consolidated Income Statement - Isolated Quarters Consolidated Balance Sheet Consolidated Statement of Cash Flows Consolidated Statement of Cash Flows - Year-to-Date Consolidated Statement of Cash Flows - Isolated Quarters Additional Information: Net Sales by Market Area by Quarter - - ENDS - Sony Ericsson Mobile Communications was established as a 50:50 joint venture by Sony and Ericsson in October 2001, with global corporate functions located in London. The company serves the worldwide communications market with innovative and feature-rich mobile phones, accessories and PC-cards, and it has R&D sites in Europe, Japan, China, India and America. Sony Ericsson is the title sponsor of the Women's Tennis Association, and works with the Association to promote the Sony Ericsson WTA Tour in over 80 cities during the year. For more information, please visit www.sonyericsson.com CONTACTS: Investors/Analysts Ericsson Investor Relations Gary Pinkham (Stockholm) +46 8 719 0858 Sony Investor Relations Shinji Tomita (London) +44 207 444 9713 Tatsuyuki Sonoda (Tokyo) +81 3 6748 2180 Press/Media Sony Ericsson Corporate Communications & PR Aldo Liguori (London) +44 208 762 5860 Merran Wrigley (London) +44 208 762 5862 This press release contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain important factors that may cause actual results to differ materially from those contained in such forward-looking statements. For a detailed description of risk factors see Sony's and Ericsson's filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F. Sony Ericsson CONSOLIDATED INCOME STATEMENT Jul-Sep ____________________________________ EUR million 2007 2006 Change ____________________________________________________________________________ Net sales 3,108 2,913 7% Cost of sales -2,154 -1,995 8% ______________________ Gross profit 954 917 4% Gross margin % 30.7% 31.5% -1% Research and development expenses -280 -225 25% Selling and administrative expenses -280 -287 -3% ______________________ Operating expenses -560 -511 9% Other operating income, net -1 21 -105% ______________________ Operating income 393 427 -8% Operating margin % 12.7% 14.6% -2% Financial income 7 8 -16% Financial expenses -16 -1 - ______________________ Income after financial items 384 433 -11% Taxes -109 -127 -14% Minority interest -8 -8 -2% ______________________ Net income 267 298 -10% Number of units shipped (million) 25.9 19.8 31% ASP (EUR) 120 147 -19% Sony Ericsson CONSOLIDATED INCOME STATEMENT Jan-Sep ____________________________________ EUR million 2007 2006 Change ____________________________________________________________________________ Net sales 9,145 7,177 27% Cost of sales -6,384 -5,089 25% ______________________ Gross profit 2,760 2,088 32% Gross margin % 30.2% 29.1% 1% Research and development expenses -824 -650 27% Selling and administrative expenses -885 -719 23% ______________________ Operating expenses -1,709 -1,369 25% Other operating income, net 2 55 -95% ______________________ Operating income 1,055 773 36% Operating margin % 11.5% 10.8% 1% Financial income 43 25 73% Financial expenses -25 -2 - ______________________ Income after financial items 1,073 796 35% Taxes -306 -224 36% Minority interest -27 -22 24% ______________________ Net income 741 550 35% Number of units shipped (million) 72.6 48.8 49% ASP (EUR) 126 147 -14% Sony Ericsson CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS 2007 2006 ____________________ ___________________________ EUR million Q3 Q2 Q1 Q4 Q3 Q2 Q1 _________________________________________________ ___________________________ Net sales 3,108 3,112 2,925 3,782 2,913 2,272 1,992 Cost of sales -2,154 -2,192 -2,039 -2,686 -1,995 -1,625 -1,469 ____________________ ___________________________ Gross profit 954 921 886 1,096 917 647 524 Gross margin % 30.7% 29.6% 30.3% 29.0% 31.5% 28.5% 26.3% Research and development expense -280 -283 -261 -256 -225 -223 -202 Selling and administrative expenses -280 -321 -284 -367 -287 -246 -186 ____________________ ___________________________ Operating expenses -560 -604 -545 -623 -511 -470 -388 Other operating income, net -1 -2 5 10 21 26 7 ____________________ ___________________________ Operating income 393 315 346 484 427 203 143 Operating margin % 12.7% 10.1% 11.8% 12.8% 14.6% 8.9% 7.2% Financial income 7 18 18 19 8 8 9 Financial expenses -16 -6 -2 0 -1 0 0 ____________________ ___________________________ Income after financial items 384 327 362 502 433 211 151 Taxes -109 -97 -100 -43 -127 -64 -34 Minority interest -8 -10 -9 -12 -8 -5 -9 ____________________ ___________________________ Net income 267 220 254 447 298 143 109 Number of units shipped (million) 25.9 24.9 21.8 26.0 19.8 15.7 13.3 ASP (EUR) 120 125 134 146 147 145 149 Sony Ericsson CONSOLIDATED BALANCE SHEET Sep 30 Jun 30 Dec 31 Sept 30 EUR million 2007 2007 2006 2006 _______________________________________________________________________________ ASSETS Total fixed and financial assets 511 498 469 316 Current assets Inventories 620 477 437 578 Accounts receivables 1,803 1,831 1,653 1,347 Other assets 544 845 310 249 Other short-term cash investments 954 1,071 1,580 1,098 Cash and bank 804 659 693 763 _____ _____ _____ _____ Total current assets 4,725 4,882 4,673 4,035 _______________________________________________________________________________ Total assets 5,236 5,380 5,141 4,351 _______________________________________________________________________________ SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 1,663 1,702 1,781 1,353 Minority interest 70 63 45 37 _____ _____ _____ _____ Total equity 1,733 1,764 1,826 1,391 Total long-term liabilities 22 21 20 17 Accounts payable 1,602 1,371 1,276 1,118 Other current liabilities 1,879 2,224 2,019 1,825 _____ _____ _____ _____ Total current liabilities 3,481 3,595 3,296 2,944 _______________________________________________________________________________ Total shareholders' equity and liabilities 5,236 5,380 5,141 4,351 _______________________________________________________________________________ Net cash* 1,758 1,729 2,272 1,795 * Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities. Sony Ericsson CONSOLIDATED STATEMENT OF CASH FLOWS Jul-Sep __________________ EUR million 2007 2006 OPERATIONS Net income 267 298 Adjustments to reconcile net income to cash 32 20 __________________ 299 318 Changes in operating net assets 88 -21 __________________ Cash flow from operating activities 387 297 INVESTMENTS Investing activities -53 -36 __________________ Cash flow from investing activities -53 -36 FINANCING Financing activities -300 -2 __________________ Cash flow from financing activities -300 -2 Net change in cash 34 259 Cash, beginning of period 1,730 1,595 Translation difference in Cash -6 7 __________________ Cash, end of period 1,758 1,861 _________________________________________________________________________ Sony Ericsson CONSOLIDATED STATEMENT OF CASH FLOWS Jan-Sep __________________ EUR million 2007 2006 _________________________________________________________________________ OPERATIONS Net income 741 550 Adjustments to reconcile net income to cash 90 62 __________________ 831 612 Changes in operating net assets -349 50 __________________ Cash flow from operating activities 482 662 INVESTMENTS Investing activities -138 -108 __________________ Cash flow from investing activities -138 -108 FINANCING Financing activities -849 -212 __________________ Cash flow from financing activities -849 -212 Net change in cash -504 342 Cash, beginning of period 2,273 1,537 Translation difference in Cash -11 -18 __________________ Cash, end of period 1,758 1,861 _________________________________________________________________________ Sony Ericsson CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar _______________________________________________________ EUR million 2007 2007 2007 2006 2006 2006 2006 _______________________________________________________________________________ OPERATIONS Net income 267 220 254 447 298 143 109 Adjustments to reconcile net income to cash 32 30 28 23 20 22 20 _______________________________________________________ 299 250 282 470 318 165 129 Changes in operating net assets 88 16 -454 50 -21 18 53 _______________________________________________________ Cash flow from operating activities 387 266 -172 520 297 183 182 INVESTMENTS Investing activities -53 -31 -53 -26 -36 -29 -43 _______________________________________________________ Cash flow from investing activities -53 -31 -53 -26 -36 -29 -43 FINANCING Financing activities -300 - 548 - 1 -66 - 2 26 - 236 _______________________________________________________ Cash flow from financing activities -300 -548 -1 -66 -2 26 -236 Net change in cash 34 -312 -226 428 259 180 -97 Cash, beginning of period 1,730 2,045 2,273 1,861 1,595 1,428 1,537 Translation difference in Cash -6 -3 -2 -16 7 -13 -12 _______________________________________________________ Cash, end of period 1,758 1,730 2,045 2,273 1,861 1,595 1,428 _______________________________________________________________________________ Sony Ericsson NET SALES BY MARKET AREA BY QUARTER EUR million 2007 2006 _____________________ __________________________ Isolated quarters Q3 Q2 Q1 Q4 Q3 Q2 Q1 ____________________________________________ __________________________ Europe, Middle East & Africa * 1,715 1,729 1,598 2,145 1,600 1,090 1,029 Americas 573 499 365 555 417 328 250 Asia 820 885 961 1,082 896 853 713 ____________________________________________ __________________________ Total 3,108 3,112 2,925 3,782 2,913 2,272 1,992 ____________________________________________ __________________________ * of which Western Europe 1,103 1,102 1,078 1,478 1,115 748 674 2007 2006 _____________________ __________________________ Sequential change (%) Q3 Q2 Q1 Q4 Q3 Q2 Q1 ____________________________________________ __________________________ Europe, Middle East & Africa * -1% 8% -26% 34% 47% 6% -27% Americas 15% 37% -34% 33% 27% 31% -19% Asia -7% -8% -11% 21% 5% 20% 20% ____________________________________________ __________________________ Total 0% 6% -23% 30% 28% 14% -14% ____________________________________________ __________________________ * of which Western Europe 0% 2% -27% 33% 49% 11% -35% 2007 2006 _____________________ __________________________ Year over year change (%) Q3 Q2 Q1 Q4 Q3 Q2 Q1 ____________________________________________ __________________________ Europe, Middle East & Africa * 7% 59% 55% 52% 35% 43% 71% Americas 37% 52% 46% 79% 77% 53% 53% Asia -8% 4% 35% 83% 42% 33% 36% ____________________________________________ __________________________ Total 7% 37% 47% 64% 42% 41% 55% ____________________________________________ __________________________ * of which Western Europe -1% 47% 60% 45% 33% 42% 84% 2007 2006 _____________________ __________________________ Year to date 0709 0706 0703 0612 0609 0606 0603 ____________________________________________ __________________________ Europe, Middle East & Africa * 5,042 3,328 1,598 5,865 3,720 2,120 1,029 Americas 1,436 864 365 1,550 995 578 250 Asia 2,666 1,846 961 3,544 2,462 1,566 713 ____________________________________________ __________________________ Total 9,145 6,037 2,925 10,959 7,177 4,264 1,992 ____________________________________________ __________________________ * of which Western Europe 3,283 2,179 1,078 4,014 2,537 1,422 674 2007 2006 _____________________ __________________________ YTD year over year change (%) 0709 0706 0703 0612 0609 0606 0603 ____________________________________________ __________________________ Europe, Middle East & Africa * 36% 57% 55% 48% 46% 56% 71% Americas 44% 49% 46% 68% 62% 53% 53% Asia 8% 18% 35% 48% 37% 35% 36% ____________________________________________ __________________________ Total 27% 42% 47% 51% 45% 47% 55% ____________________________________________ __________________________ * of which Western Europe 29% 53% 60% 46% 46% 59% 84% -----END PRIVACY-ENHANCED MESSAGE-----