-----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, PuR/CLd4mTJ0OfWIsfgOazrumUSteHhww7dUIoXy0S3OzvG+p2q2B1WAZiMSBJ1H +5GNOP8zGMIROOEhkSZixw== 0001191638-08-000705.txt : 20080423 0001191638-08-000705.hdr.sgml : 20080423 20080423060221 ACCESSION NUMBER: 0001191638-08-000705 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20080423 FILED AS OF DATE: 20080423 DATE AS OF CHANGE: 20080423 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: 08770529 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 son200804236k2.txt SONY ERICSSON Q1 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 April 2008 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: April 23, 2008 List of materials Documents attached hereto: i) Press release announcing Sony Ericsson continues to invest for future growth Sony Ericsson PRESS RELEASE April 23, 2008 Sony Ericsson continues to invest for future growth Q1 Highlights: - Year-on-year volume growth of 2% - Income before taxes at higher end of forecast - R&D investment continues to expand portfolio and addressable market - New sub-brand XPERIA(TM) added to portfolio The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the first quarter ended March 31, 2008 is as follows:
Q1 2007 Q4 2007 Q1 2008 _______ _______ _______ Number of units shipped (million) 21.8 30.8 22.3 Sales (Euro m.) 2,925 3,771 2,702 Gross margin (%) 30.3% 31.8% 29.2% Operating income (Euro m.) 346 489 181 Operating income (%) 11.8% 13.0% 6.7% Income before taxes (Euro m.) 362 501 193 Net income (Euro m.) 254 373 133 Average sales price (Euro) 134 123 121
Units shipped in the quarter were 22.3 million, a 2% increase compared to the same period last year and in line with our March 19, 2008 interim announcement of 22 million units. Sales for the quarter were Euro 2,702 million, a decrease of 8% on a year ago due to slowing market growth in mid-to-high end phones in markets where Sony Ericsson has a strong presence. Gross margin was one percentage point lower than Q1 2007, reflecting a less favourable product mix. Income before taxes for the quarter was Euro 193 million, which was at the higher end of the range (Euro 150-200 million) we announced on March 19, 2008. This represented a decrease of 47% compared with a year ago, due to higher R&D investments as a percentage of sales, and reflecting that Q1 2007 was a particularly strong first quarter for the company. Net income for the quarter was 48% lower, at Euro 133 million. "Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets," said Dick Komiyama, President, Sony Ericsson. "Our product announcements during the first quarter have been well received by the industry, and we expect to see a positive effect from these announcements during the second half of 2008." During the quarter, Sony Ericsson added a new sub-brand to its product portfolio with the announcement of the XPERIA(TM) X1, a high-end multi-media convergence phone based on Windows Mobile(R), which will launch in the second half of the year. In addition, the company announced a number of new phones during the quarter to increase the appeal of its brand to a broader audience. These included new high-end Walkman(R) and HSDPA web phones, such as the W980, W760, Z770 models and also added to its cutting-edge Cyber-shot(TM) range with models such as the C702 and C902. Average selling price (ASP) decreased both sequentially and year-on-year due to the impact of softer sales of high-to-mid end models in key markets. Market share for the quarter is estimated to be around 8%, down one percentage point sequentially. Sony Ericsson made a dividend payment of Euro 470 million during the quarter to the parent companies. A second dividend payment will be made this year. Sony Ericsson forecasts that the global handset market for 2008 will grow at a rate of around 10% from more than 1.1 billion units in 2007. The majority of this growth is expected to be in emerging markets. XPERIA(TM) is a trademark of Sony Ericsson Mobile Communications WALKMAN(R) and Cyber-shot(TM) are trademarks or registered trademarks of Sony Corporation Microsoft and Windows Mobile(R) are trademarks of Microsoft Corporation EDITOR'S NOTES: - --------------- Financial statements and additional information: - ------------------------------------------------ Financial statements: - --------------------- Consolidated income statement Consolidated income statement - isolated quarters Consolidated balance sheet Consolidated statement of cash flows Consolidated statement of cash flows - isolated quarters Additional information: - ----------------------- Net sales by market area by quarter - - ENDS - Having sold over 100 million phones in 2007, Sony Ericsson is currently one of the five largest mobile phone manufacturers in the world. An important industry player operating in over 80 countries, our phones, accessories and PC cards are synonymous with innovation and style. With R&D sites in Europe, Japan, China, India and North America, diversity is one of the core strengths of the company. Sony Ericsson was established as a 50:50 joint venture by Sony and Ericsson in October 2001, with global corporate functions located in London. For more information about Sony Ericsson 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 20 7444 9713 Tatsuyuki Sonoda (Tokyo) +81 3 6748 2180 Press / Media - ------------- Sony Ericsson global communications and PR Aldo Liguori (London) +44 20 8762 5860 Merran Wrigley (London) +44 20 8762 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 Jan-Mar ____________________________________ EUR million 2008 2007 Change ____________________________________________________________________________ Net sales 2,702 2,925 -8% Cost of sales -1,914 -2,039 -6% ______________________ Gross profit 788 886 -11% Gross margin % 29.2% 30.3% -1% Research and development expenses -339 -261 30% Selling and administrative expenses -270 -284 -5% ______________________ Operating expenses -610 -545 12% Other operating income, net 3 5 -36% ______________________ Operating income 181 346 -48% Operating margin % 6.7% 11.8% -5% Financial income 22 18 24% Financial expenses -10 -2 - ______________________ Income after financial items 193 362 -47% Taxes -57 -100 -43% Minority interest -3 -9 -63% ______________________ Net income 133 254 -48% Number of units shipped (million) 22.3 21.8 2% ASP (EUR) 121 134 -10% Sony Ericsson CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS 2008 2007 ________ _____________________________________ EUR million Q1 Q4 Q3 Q2 Q1 ___________________________________ _____________________________________ Net sales 2,702 3,771 3,108 3,112 2,925 Cost of sales -1,914 -2,573 -2,154 -2,192 -2,039 ________ _____________________________________ Gross profit 788 1,198 954 921 886 Gross margin % 29.2% 31.8% 30.7% 29.6% 30.3% Research and development -339 -349 -280 -283 -261 expenses Selling and administrative -270 -375 -280 -321 -284 expenses ________ _____________________________________ Operating expenses -610 -724 -560 -604 -545 Other operating income, 3 15 -1 -2 5 net ________ _____________________________________ Operating income 181 489 393 315 346 Operating margin % 6.7% 13.0% 12.7% 10.1% 11.8% Financial income 22 19 7 18 18 Financial expenses -10 -7 -16 -6 -2 ________ _____________________________________ Income after financial 193 501 384 327 362 items Taxes -57 -118 -109 -97 -100 Minority interest -3 -10 -8 -10 -9 ________ _____________________________________ Net income 133 373 267 220 254 Number of units shipped 22.3 30.8 25.9 24.9 21.8 (million) ASP (EUR) 121 123 120 125 134 Sony Ericsson CONSOLIDATED BALANCE SHEET Mar 31 Dec 31 Mar 31 EUR million 2008 2007 2007 _________________________________________________________________ ASSETS Total fixed and financial assets 594 572 495 Current assets Inventories 484 437 498 Accounts receivables 1,710 1,870 1,566 Other assets 369 345 859 Other short-term cash investments 1,106 1,431 1,376 Cash and bank 605 724 668 _______ _______ _______ Total current assets 4,274 4,808 4,968 _________________________________________________________________ Total assets 4,868 5,380 5,463 _________________________________________________________________ SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity 1,665 2,026 2,033 Minority interest 69 64 55 _______ _______ _______ Total equity 1,734 2,090 2,088 Total long-term liabilities 25 26 22 Accounts payable 1,228 1,263 1,316 Other current liabilities 1,880 2,001 2,037 _______ _______ _______ Total current liabilities 3,108 3,264 3,353 _________________________________________________________________ Total shareholders' equity and 4,868 5,380 5,463 liabilities _________________________________________________________________ Net cash* 1,703 2,155 2,045
* Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities.
Sony Ericsson CONSOLIDATED STATEMENT OF CASH FLOWS Jan-Mar __________________________ EUR million 2008 2007 ____________________________________________________________________ OPERATIONS Net income 133 254 Adjustments to reconcile net income to 31 28 cash __________________________ 164 282 Changes in operating net assets -101 -454 __________________________ Cash flow from operating activities 64 -172 INVESTMENTS Investing activities -22 -53 __________________________ Cash flow from investing activities -22 -53 FINANCING Financing activities -462 - 1 __________________________ Cash flow from financing activities -462 -1 Net change in cash -421 -226 Cash, beginning of period 2,155 2,273 Translation difference in Cash -24 -2 __________________________ Cash, end of period 1,711 2,045 ____________________________________________________________________
Sony Ericsson CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar ____________________________________________ EUR million 2008 2007 2007 2007 2007 ____________________________________________________________________________ OPERATIONS Net income 133 373 267 220 254 Adjustments to reconcile net 31 17 32 30 28 income to cash ____________________________________________ 164 390 299 250 282 Changes in operating net assets -101 44 88 16 -454 ____________________________________________ Cash flow from operating 64 434 387 266 -172 activities INVESTMENTS Investing activities -22 -27 -53 -31 -53 ____________________________________________ Cash flow from investing -22 -27 -53 -31 -53 activities FINANCING Financing activities -462 0 -300 -548 -1 ____________________________________________ Cash flow from financing -462 0 -300 -548 -1 activities Net change in cash -421 408 34 -312 -226 Cash, beginning of period 2,155 1,758 1,730 2,045 2,273 Translation difference in Cash -24 -10 -6 -3 -2 ____________________________________________ Cash, end of period 1,711 2,155 1,758 1,730 2,045 ____________________________________________________________________________ Sony Ericsson NET SALES BY MARKET AREA BY QUARTER EUR million 2008 2007 ________ _____________________________ Isolated quarters Q1 Q4 Q3 Q2 Q1 ___________________________________________________________________________ Europe, Middle East & Africa * 1,494 2,251 1,715 1,729 1,598 Americas 486 636 573 499 365 Asia 722 884 820 885 961 ___________________________________________________________________________ Total 2,702 3,771 3,108 3,112 2,925 ___________________________________________________________________________ * of which Western Europe 979 1,569 1,103 1,102 1,078 2008 2007 ________ _____________________________ Sequential change (%) Q1 Q4 Q3 Q2 Q1 ___________________________________________________________________________ Europe, Middle East & Africa * -34% 31% -1% 8% -26% Americas -24% 11% 15% 37% -34% Asia -18% 8% -7% -8% -11% ___________________________________________________________________________ Total -28% 21% 0% 6% -23% ___________________________________________________________________________ * of which Western Europe -38% 42% 0% 2% -27% 2008 2007 ________ _____________________________ Year over year change (%) Q1 Q4 Q3 Q2 Q1 ___________________________________________________________________________ Europe, Middle East & Africa * -7% 5% 7% 59% 55% Americas 33% 15% 37% 52% 46% Asia -25% -18% -8% 4% 35% ___________________________________________________________________________ Total -8% 0% 7% 37% 47% ___________________________________________________________________________ * of which Western Europe -9% 6% -1% 47% 60% 2008 2007 ________ _____________________________ Year to date 0803 0712 0709 0706 0703 ___________________________________________________________________________ Europe, Middle East & Africa * 1,494 7,293 5,042 3,328 1,598 Americas 486 2,072 1,436 864 365 Asia 722 3,550 2,666 1,846 961 ___________________________________________________________________________ Total 2,702 12,916 9,145 6,037 2,925 ___________________________________________________________________________ * of which Western Europe 979 4,852 3,283 2,179 1,078 2008 2007 ________ _____________________________ YTD year over year change (%) 0803 0712 0709 0706 0703 ___________________________________________________________________________ Europe, Middle East & Africa * -7% 24% 36% 57% 55% Americas 33% 34% 44% 49% 46% Asia -25% 0% 8% 18% 35% ___________________________________________________________________________ Total -8% 18% 27% 42% 47% ___________________________________________________________________________ * of which Western Europe -9% 21% 29% 53% 60%
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