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< Esato Forum Index > Sony Ericsson / Sony > General > Sony Ericsson reports first quarter results 2009 Bookmark topic

Q1 highlights:

Income before taxes was a loss of Euro 358 million (excl. restructuring charges)
Cost saving program progressing as planned and additional savings of Euro 400 million announced
Launch of ‘Entertainment Unlimited’ consumer proposition and new generation of products well received by operator partners
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the first quarter ended March 31, 2009 is as follows:
Q12008 Q42008 Q12009Numberofunitsshipped(million)22.324.214.5Sales(Eurom.)2,7022,9141,736Grossmargin(%)29%15%8%Operatingincome(Eurom.) 184-262-369Operatingmargin(%)7%-9%-21%Restructuringcharges(Eurom.)-12912Operatingincomeexcl.restructuring
charges(Eurom.)--133-357Operatingmarginexcl.restructuringcharges(%)--5%-21%Incomebeforetaxes(IBT)(Eurom.)193-261-370IBTexcl.restructuringcharges(Eurom.)--133-358Netincome(Eurom.)133-187-293
Averagesellingprice(Euro)121121120


Units shipped in the quarter were 14.5 million, a decrease of 35% compared to the same period of last year and in line with our March 20, 2009 interim announcement of approximately 14 million units. Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.

Gross margin declined both year-on-year and sequentially, reflecting a change in the product mix, material write-offs, and exchange rate volatility.

Income before taxes for the quarter excluding restructuring charges was a loss of Euro 358 million, within the range announced on March 20, 2009 (loss of Euro 340 - 390 million).

“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” said Dick Komiyama, President, Sony Ericsson. “The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”

The company’s initial cost saving program targeting annual operating expense reductions of Euro 300 million by the end of the first half of 2009, including a workforce reduction of 2,000 headcount, has now been completed. A total of Euro 187 million restructuring charges have been recorded compared to the initial estimated costs of Euro 300 million.

In January 2009 an additional cost saving program was initiated to target annual operating expense reductions of Euro 180 million by the end of 2009. The cost of this program will be covered by the initial Euro 300 million restructuring costs announced in July 2008.

The additional cost saving program announced today will include a further reduction in the global workforce of approximately 2,000 people. It is estimated that new restructuring charges of Euro 200 million will be needed to complete this program.

As of March 31, 2009, Sony Ericsson retained a strong net cash position of Euro 1.1 billion.

Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.

Sony Ericsson forecasts that the global handset market for 2009 will contract at least 10% from around 1,190 million units in 2008.

At Mobile World Congress in February 2009, Sony Ericsson announced a new consumer proposition, called ‘Entertainment Unlimited’ (EU), to build on Sony Ericsson’s leadership in music, imaging, gaming, content services, and applications to deliver unlimited opportunities for consumers. The company also announced the first Entertainment Unlimited phone with the concept name ‘Idou’ to be launched in the second half of 2009. The next EU announcement will take place on 28 May.

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Posted: 2009-04-17 10:09:00
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So, the balance sheet is still quite healthy - lets hope this isn't eroded completely this year.

I'm sort of glad they're contracting, we should see more top-tier high-impact devices from now on.
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Posted: 2009-04-17 10:23:42
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i think everyone will get wild with the last paragraph....it can be hinting more info on IDOU or it mean the NEXT EU is a new EU phone!!! hehe

i think die hard fans will forget the bad impact but focus on 28th MAY.....the day everyone hogging SEMC site for new product info.
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Posted: 2009-04-17 10:43:40
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that's what i call a bad result. their sales have almost halved since last quarter, with net revenue and net profits falling further into the red.

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Posted: 2009-04-17 13:11:55
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Shocking
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Posted: 2009-04-17 14:38:32
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They just showed about the job cuts on BBC 6pm News I will be supporting SE all the way. Things can only get better........cant they?

[ This Message was edited by: Bonovox on 2009-04-17 18:23 ]
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Posted: 2009-04-17 19:21:00
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Cant wait for 28th May.
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Posted: 2009-04-17 19:26:45
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I just wonder how SE's loss compare to Motorola...
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Posted: 2009-04-17 19:43:07
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Motorola? Who? Lol i cant even remember what their last model was
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Posted: 2009-04-17 20:29:00
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Unlucky and ye also looking forward to 28th May to witness the announcement of a future failure, hope im wrong though.
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Posted: 2009-04-17 20:42:10
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