STOCKHOLM, SWEDEN — (Marketwire) — 10/14/11 —
Highlights:
* Income before taxes was Euro 31 million
* 33 percent increase in sales quarter-on-quarter
* Smartphones account for more than 80 percent of total sales
The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the third quarter ended September 30, 2011 is as follows:
Bert Nordberg, President and CEO of Sony Ericsson commented, “We delivered a
solid 73 million Euro improvement in income before taxes as we rebounded from
the previous quarter with a 33 percent increase in sales. Android-based
Xperia smartphone sales now account for more than 80 percent of sales and
we
have shipped 22 million Xperia smartphones to date. We will continue to
invest
in the smartphone market, shifting the entire portfolio to smartphones during
2012.”
Units shipped during the quarter were 9.5 million, a 9% decrease year-on-year
due to a decline in feature phone shipments, partially offset by an increase
in
smartphone shipments. The 25% quarter-on-quarter increase was due to the
higher
volume of smartphones shipped.
Average selling price (ASP) for the quarter was Euro 166, up 8% year-on-year
and
6% sequentially. The year-on-year increase was due to the shift to smartphones
and geographic mix despite a negative effect from foreign exchange rates. The
sequential increase was due to product and geographic mix.
Sales for the quarter were approximately Euro 1.6 billion and essentially flat
year-on-year.
The gross margin percentage for the quarter was 27%, a decrease of 3
percentage
points year-on-year and 4 percentage points from the previous quarter. The
year-on-year decrease in margin is attributed to product and geographic mix.
The sequential decrease in margin was due to inventory-related adjustments and
product and geographic mix.
Income before taxes for the quarter was Euro 31 million, compared to income
before taxes of Euro 62 million for the same quarter in the previous year.
Loss
before taxes for the previous quarter was Euro 42 million. The sequential
improvement was reflective of higher sales and lower operating expenses, while
the year-on-year decline was due to lower gross margin percentage offset by
lower operating expenses.
Net income during the quarter improved by Euro 50 million sequentially, while
net income decreased by Euro 49 million year-on-year. Income taxes recorded
during the quarter reflect the distribution of profits and losses between
various jurisdictions and tax adjustments. Minority interest reflects higher
net
income at a majority-owned joint venture company.
Cash flow from operating activities during the quarter was Euro 53 million.
External borrowings of Euro 51 million were repaid during the quarter,
resulting
in total borrowings of Euro 718 million at the end of the quarter. Total cash
balances at September 30, 2011 amounted to Euro 466 million.
Sony Ericsson estimates that its share of the global Android-based smartphone
market during the quarter was approximately 12% 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.
Sony Ericsson
CONSOLIDATED INCOME STATEMENT
Sony Ericsson
CONSOLIDATED INCOME STATEMENT – ISOLATED QUARTERS
Sony Ericsson
CONSOLIDATED BALANCE SHEET
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS – ISOLATED QUARTERS
Sony Ericsson
NET SALES BY MARKET AREA BY QUARTER
The full report (including tables) can be downloaded from the following link:
Third quarter 2011 financial results:
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#1554854]
CONTACTS:
Ericsson investor relations
Stefan Jelvin (Stockholm)
+46 10 714 2039
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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