Sony Ericsson reports first quarter 2010 results
(Thomson Reuters ONE) -
Q1 Highlights:
* Company returns to profitability in Q1 2010
* ASP rises to Euro 134 as Xperia(TM) X10 and Vivaz(TM) start shipping
* Improved cost structure generates better margins
The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the first quarter ended March 31, 2010 is as follows:
Q1 2009 Q4 2009 Q1 2010
Number of units shipped (million) 14.5 14.6 10.5
Sales (Euro m.) 1,736 1,750 1,405
Gross margin (%) 8% 23% 31%
Operating income (Euro m.) -369 -181 20
Operating margin (%) -21% -10% 1%
Restructuring charges (Euro m.) 12 150 3
Operating income excl. restructuring charges -357 -32 23
(Euro m.)
Operating margin excl. restructuring charges -21% -2% 2%
(%)
Income before taxes (IBT) (Euro m.) -370 -190 18
IBT excl. restructuring charges (Euro m.) -358 -40 21
Net income (Euro m.) -293 -167 21
Average selling price (Euro) 120 120 134
Bert Nordberg, President, Sony Ericsson commented, "We are pleased to see the
positive impact of both the launch of new products and the business
transformation programme improving the company's results. The Xperia(TM) X10,
our first android-based Communication Entertainment device featuring signature
Sony Ericsson applications Timescape and Mediascape(TM), and Vivaz(TM), a
beautifully designed, touch-screen Symbian phone started shipping towards the
end of the quarter. Both models have been well received by global customers." He
added, "Increases in both gross and operating margins show that we are on the
right track to build the correct cost structure for our business organization
and strategy. We will continue to work through the transformation programme to
ensure that we are competitive."
Units shipped in the quarter were 10.5 million, a decrease of 28% compared to
the same period last year, reflecting the streamlining of the portfolio over the
past 12 months to focus on higher-end phones. Sales for the quarter were Euro
1,405 million, a decrease of 19% year on year. Average selling price (ASP)
increased 12% both sequentially and year-on-year to Euro 134 during the quarter
due to good sell through of existing models, new flagship phones starting to
ship at the end of the quarter and a positive currency effect.
Gross margin rose both sequentially and year-on-year, reflecting a more
favourable product mix and the benefit of cost of sales improvements in the past
year, including the resolution of certain royalty matters during the quarter.
Income before taxes for the quarter excluding restructuring was a profit of Euro
21 million, illustrating the positive impact of the cost reduction programme.
The transformation programme, which started in mid-2008, with the aim of
reducing annual operating expenses by Euro 880 million is continuing with the
full benefit expected during the second half of 2010. Since the start of the
programme, Sony Ericsson has reduced its global workforce by approximately
3,150 people to reach a total of 8,450 by March 31, 2010. The total
restructuring charges taken to date are Euro 342 million.
As of March 31, 2010, Sony Ericsson retained a net cash position of Euro 563
million.
During the first quarter of 2010, Sony Ericsson obtained additional external
funding of Euro 150 million. The funding was guaranteed by the parent companies
on a 50/50 basis.
Market share in unit base for the quarter decreased by one percentage point
sequentially and is now estimated to be around 4%.
Sony Ericsson maintains a forecast of slight growth in units in the global
handset market in 2010.
END
The liquid identity is a registered trademark of Sony Ericsson Mobile
Communications AB.
Vivaz(TM), Mediascape(TM) and XPERIA(TM) are trademarks or registered trademarks
of Sony Ericsson Mobile Communications AB.
Sony is a registered trademark of Sony Corporation. Ericsson is a registered
trademark of Telefonaktiebolaget LM Ericsson.
Any rights not expressly granted herein are reserved and subject to change
without prior notice.
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 -
Sony Ericsson is a 50:50 joint venture by Sony and Ericsson established in
October 2001, with global corporate functions located in London and operations
in all major markets. Sony Ericsson vision is to become the industry leader in
Communication Entertainment; where new styles of communicating through the
internet and social media, become entertainment. Sony Ericsson offers exciting
consumer experiences through phones, accessories, content and applications. For
more information please visit, www.sonyericsson.com
CONTACTS:
Investors / Analysts
Ericsson investor relations
Susanne Andersson (Stockholm) +46 10 719 4631
Andreas Hedemyr (Stockholm) +46 10 714 3748
Sony investor relations
Gen Tsuchikawa (Tokyo) +81 3 6748 2180
Yas Hasegawa (London) +44 20 7426 8696
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. Sony Ericsson has 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 2010 2009 Change
------------------------------------------------------------------
Net sales 1,405 1,736 -19%
Cost of sales -975 -1,591 -39%
---------------------
Gross profit 429 145 196%
Gross margin % 30.6% 8.4% 22%
Research and development expenses -216 -303 -29%
Selling and administrative expenses -207 -225 -8%
---------------------
Operating expenses -423 -528 -20%
Other operating income, net 14 13 9%
---------------------
Operating income 20 -369 -
Operating margin % 1.4% -21.3% -
Financial income 7 9 -26%
Financial expenses -9 -10 -9%
---------------------
Income after financial items 18 -370 -
Taxes 6 84 -93%
Minority interest -3 -6 -51%
---------------------
Net income 21 -293 -
Number of units shipped (million) 10.5 14.5 -28%
ASP (EUR) 134 120 12%
EUR Million Jan-Mar Jan-Mar
----------------------------------------------------------
Restructuring charges 2010 2009
----------------------------------------------------------
Cost of sales -2 7
Research and development expenses 2 2
Sales and administrative expenses 3 3
Other operating income, net 0 0
----------------------------------------------------------
Total 3 12
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2010 2009
------- ----------------------------
EUR million Q1 Q4 Q3 Q2 Q1
------------------------------------------ ----------------------------
Net sales 1,405 1,750 1,619 1,684 1,736
Cost of sales -975 -1,341 -1,367 -1,483 -1,591
------- ----------------------------
Gross profit 429 409 252 200 145
Gross margin % 30.6% 23.4% 15.5% 11.9% 8.4%
Research and development expenses -216 -299 -260 -245 -303
Selling and administrative expenses -207 -299 -205 -235 -225
------- ----------------------------
Operating expenses -423 -599 -465 -480 -528
Other operating income, net 14 8 21 6 13
------- ----------------------------
Operating income 20 -181 -193 -274 -369
Operating margin % 1.4% -10.4% -11.9% -16.3% -21.3%
Financial income 7 4 3 6 9
Financial expenses -9 -12 -9 -15 -10
------- ----------------------------
Income after financial items 18 -190 -199 -283 -370
Taxes 6 36 42 74 84
Minority interest -3 -12 -6 -4 -6
------- ----------------------------
Net income 21 -167 -164 -213 -293
Number of units shipped (million) 10.5 14.6 14.1 13.8 14.5
ASP (EUR) 134 120 114 122 120
EUR Million 2009 2009
------------------------------------------ ----------------------------
Restructuring charges Q1 Q4 Q3 Q2 Q1
------------------------------------------ ----------------------------
Cost of sales -2 41 0 -9 7
Research and development expenses 2 72 1 9 2
Sales and administrative expenses 3 37 1 1 3
Other operating income, net 0 0 0 0 0
------------------------------------------ ----------------------------
Total 3 150 2 1 12
Sony Ericsson
CONSOLIDATED BALANCE SHEET
Mar 31 Dec 31 Mar 31
EUR million 2010 2009 2009
---------------------------------------------------------------------
ASSETS
Total fixed and financial assets 791 779 658
Current assets
Inventories 384 358 477
Accounts receivable 849 832 1,193
Other assets 369 415 463
Other short-term cash investments 537 489 574
Cash and bank 443 389 542
-------- -------- -------
Total current assets 2,582 2,483 3,249
---------------------------------------------------------------------
Total assets 3,373 3,262 3,908
---------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 438 381 930
Minority interest 54 47 65
-------- -------- -------
Total equity 492 428 995
Borrowing, Non Current 100 0 0
Other long-term liabilities 37 32 30
-------- -------- -------
Total long-term liabilities 137 32 30
Accounts payable 829 852 965
Borrowing, Current 316 258 0
Other current liabilities 1,599 1,692 1,918
-------- -------- -------
Total current liabilities 2,744 2,802 2,882
---------------------------------------------------------------------
Total shareholders' equity and liabilities 3,373 3,262 3,908
---------------------------------------------------------------------
Net cash* 563 620 1,116
* 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 2010 2009
------------------------------------------------------------
OPERATIONS
Net income 21 -293
Adjustments to reconcile net income to cash -44 29
---------------
-23 -263
Changes in operating net assets -72 321
---------------
Cash flow from operating activities -94 58
INVESTMENTS
Investing activities 27 -19
---------------
Cash flow from investing activities 27 -19
FINANCING
Financing activities 150 -53
---------------
Cash flow from financing activities 150 -53
Net change in cash 83 -14
Cash, beginning of period 878 1,125
Translation difference in Cash 19 5
---------------
Cash, end of period 980 1,116
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
2010 2009
------ ----------------------
EUR million Q1 Q4 Q3 Q2 Q1
------------------------------------------------- ----------------------
OPERATIONS
Net income 21 -167 -164 -213 -293
Adjustments to reconcile net income to cash -44 48 20 37 29
------ ----------------------
-23 -119 -143 -176 -263
Changes in operating net assets -72 -97 49 60 321
------ ----------------------
Cash flow from operating activities -94 -216 -94 -115 58
INVESTMENTS
Investing activities 27 -10 -42 -13 -19
------ ----------------------
Cash flow from investing activities 27 -10 -42 -13 -19
FINANCING
Financing activities 150 100 159 0 -53
------ ----------------------
Cash flow from financing activities 150 100 159 0 -53
Net change in cash 83 -126 22 -128 -14
Cash, beginning of period 878 996 965 1,116 1,125
Translation difference in Cash 19 8 9 -23 5
------ ----------------------
Cash, end of period 980 878 996 965 1,116
Sony Ericsson
NET SALES BY MARKET AREA BY QUARTER
EUR million
2010 2009
--------- --------------------------------
Isolated quarters Q1 Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
Europe, Middle East & Africa * 711 966 875 927 977
Americas 201 222 232 195 200
Asia 493 562 512 562 559
--------------------------------------------------------------------------------
Total 1,405 1,750 1,619 1,684 1,736
--------------------------------------------------------------------------------
* of which Western Europe 525 678 636 678 721
2010 2009
--------- --------------------------------
Sequential change (%) Q1 Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
Europe, Middle East & Africa * -26% 10% -6% -5% -40%
Americas -10% -4% 19% -3% -69%
Asia -12% 10% -9% 1% -12%
--------------------------------------------------------------------------------
Total -20% 8% -4% -3% -40%
--------------------------------------------------------------------------------
* of which Western Europe -23% 7% -6% -6% -35%
2010 2009
--------- --------------------------------
Year over year change (%) Q1 Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
Europe, Middle East & Africa * -27% -41% -39% -33% -35%
Americas 1% -65% -67% -74% -59%
Asia -12% -12% -25% -19% -23%
--------------------------------------------------------------------------------
Total -19% -40% -42% -40% -36%
--------------------------------------------------------------------------------
* of which Western Europe -27% -39% -33% -25% -26%
2010 2009
--------- --------------------------------
Year to date 1003 0912 0909 0906 0903
--------------------------------------------------------------------------------
Europe, Middle East & Africa * 711 3,744 2,778 1,903 977
Americas 201 850 627 395 200
Asia 493 2,194 1,633 1,121 559
--------------------------------------------------------------------------------
Total 1,405 6,788 5,038 3,419 1,736
--------------------------------------------------------------------------------
* of which Western Europe 525 2,714 2,036 1,400 721
2010 2009
--------- --------------------------------
YTD year over year change (%) 1003 0912 0909 0906 0903
--------------------------------------------------------------------------------
Europe, Middle East & Africa * -27% -37% -35% -34% -35%
Americas 1% -67% -67% -68% -59%
Asia -12% -20% -22% -21% -23%
--------------------------------------------------------------------------------
Total -19% -40% -40% -38% -36%
--------------------------------------------------------------------------------
* of which Western Europe -27% -31% -28% -26% -26%
The full report (including tables) can be downloaded from the following link:
[HUG#1404381]
First quarter report 2010: http://hugin.info/133603/R/1404381/358504.pdf
Unternehmensinformation / Kurzprofil:
Datum: 16.04.2010 - 08:34 Uhr
Sprache: Deutsch
News-ID 19158
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