STOCKHOLM, SWEDEN — (Marketwire) — 07/15/11 —
Highlights:
* Supply chain constraints from the Japan earthquake significantly impact
Q2 results
* Smartphones account for more than 70 percent of total sales
* Android-based Xperia volume up 150 percent year-on-year
The consolidated financial summary for Sony Ericsson Mobile Communications
AB
(Sony Ericsson) for the second quarter ended June 30, 2011 is as follows:
Bert Nordberg, President and CEO of Sony Ericsson commented, “Sony
Ericsson-s
second quarter profitability was affected by the March 11 earthquake in
Japan.
We estimate that the impact of earthquake-related supply chain
constraints on
our portfolio was close to 1.5 million units, with most of the effect
in the
early part of the quarter. Our shift to Android-based smartphones
continues
with smartphone sales accounting for more than 70 percent of our total
sales
during the quarter. We have shipped more than 16 million Xperia
smartphones to
date. We have introduced eight new Xperia smartphones this year and we
continue
to see strong consumer and operator demand across the Xperia
smartphone
portfolio.”
Units shipped during the quarter were 7.6 million, a 31% decrease year-
on-year
and a 6% decrease sequentially, due to a decrease in volume
caused by
constrained supply of critical components and an anticipated decline
in the
number of feature phones shipped.
Average selling price (ASP) for the quarter was Euro 156, a 3% decrease
year-on-
year but an 11% increase sequentially. The year-on-year decrease is
due to
product and geographic mix and price erosion. The sequential increase in
ASP is
attributed to favorable product and geographic mix, more than offsetting
price
erosion and unfavorable foreign exchange rates.
Sales for the quarter were Euro 1,193 million, a 32% decrease year-on-year
and a
4% increase sequentially.
The gross margin percentage for the quarter was 31% with an improvement
of 3
percentage points year-on-year that included restructuring charges,
and a
decrease of 2 percentage points from the previous quarter, which
included the
benefit of some larger than normal items relating to royalty
matters and
warranty estimates.
Loss before taxes for the quarter was Euro 42 million, compared to an
income
before taxes of Euro 31 million for the same quarter in the previous
year, due
to lower volume. Income before taxes for the previous quarter was
Euro 15
million. The sequential change was reflective of lower gross margin and
higher
operating expenses.
The quarter ended in a net loss of Euro 50 million, compared to a net
income of
Euro 12 million in the same quarter in the previous year, and Euro 11
million in
the last quarter. Tax expenses in this quarter included the impact
of tax
adjustments and the distribution of profits and losses between
various
jurisdictions.
Cash flow from operating activities during the quarter was negative Euro
224
million, mainly due to increases in accounts receivables and
inventories,
negative net income and timing of certain payments. New external
borrowings of
Euro 165 million were made during the quarter to enhance liquidity and
growth,
resulting in total borrowings of Euro 769 million at the end of the
quarter.
Total cash balances at June 30, 2011 amounted to Euro 516 million.
Sony Ericsson estimates that its share in the global Android-based
smartphone
market during the quarter was approximately 11% in volume and 11% in value.
Sony Ericsson maintains its forecast for modest industry growth in total
units
in the global handset market for 2011.
The liquid identity is a registered trademark of Sony Ericsson
Mobile
Communications AB. Xperia is a trademark 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:
About Sony Ericsson
Sony Ericsson celebrates its 10th year as a joint venture between Sony
Corporation and Ericsson in October 2011. Over the years Sony Ericsson has
brought together the best communication technologies with superior
entertainment
user experiences to create its Xperia line of the -most entertaining
smartphones- in the mobile handset industry. With its global corporate
functions
in London, Sony Ericsson has sales and marketing operations in all major
regions
of the world, as well as manufacturing operations in China, and product
development sites in China, Japan, Sweden and Silicon Valley, California.
For
more information, please visit: .
– ENDS –
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.
The full report (including tables) can be downloaded from the following
link:
Second quarter report 2011:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
[HUG#1531189]
CONTACTS:
Ericsson investor relations
Susanne Andersson (Stockholm)
+46 10 719 4631
Sony investor relations
Yoshinori Hashitani (Tokyo)
+81 3 6748 2111
Yas Hasegawa (London)
+44 20 7426 8696
Press / Media
Sony Ericsson global communications and PR
Cathy Davies (London)
+44 208 762 5879
Holly Rossetti (London)
+ 44 208 762 5851
Gustaf Brusewitz (London)
+44 208 762 5805
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