a5872895.htm

 
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 January 2009
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: January 16, 2009
 
 
List of materials
 
 
Documents attached hereto:
 
 
i) Press release announcing Sony's fourth quarter results
 
 
 

 
Logo
 
PRESS RELEASE 
January 16, 2009
 
 
Sony Ericsson reports results for fourth quarter and full year 2008
 

Highlights:
·  
Global economic slowdown leads to contracting consumer demand
·  
Previously announced annual Euro 300 million cost savings on track
·  
Initiated additional Euro 180 million annual cost savings
·  
Joined the Open Handset Alliance and developing new phone using Android Open Source software
·  
Successful rollout of Xperia™ X1, Cyber-shot™C905 phones and PlayNow™ plus music service
 
London, UK - The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the fourth quarter and full year ended December 31, 2008 is as follows:
 
      Q4 2008       Q3 2008       Q4 2007    
FY 2008
   
FY 2007
 
Number of units shipped (million)
    24.2       25.7       30.8       96.6       103.4  
Sales (Euro m.)
    2,914       2,808       3,771       11,244       12,916  
Gross margin (%)
    15 %     22 %     32 %     22 %     31 %
Operating income (Euro m.)
    -262       -33       489       -113       1,544  
Operating margin (%)
    -9 %     -1 %     13 %     -1 %     12 %
   Restructuring charges (Euro m.)
    129       35       -       175       -  
   Operating income excl. restructuring charges (Euro m.)
    -133       2       489       61       1,544  
   Operating margin excl. restructuring charges (%)
    -5 %     0 %     13 %     1 %     12 %
Income before taxes (IBT) (Euro m.)
    -261       -23       501       -83       1,574  
   IBT excl. restructuring charges (Euro m.)
    -133       12       501       92       1,574  
Net income (Euro m.)
    -187       -25       373       -73       1,114  
                                         
Average selling price (Euro)
    121       109       123       116       125  
 
Units shipped in the quarter were 24.2 million, a sequential decrease of 6% and a year-on-year decrease of 21%. Sales for the quarter were Euro 2,914 million, an increase of 4% sequentially due to a positive impact of currency fluctuations, and a decrease of 23% compared to Q4 2007.  The decline in sales year-on-year was driven by lower volumes, due to the global economic slowdown that resulted in contracting consumer demand and decreased availability of credit.

Gross margin became 15% due to negative impact from exchange rate fluctuations, restructuring charges and material write-offs.

Foreign exchange fluctuations had a positive impact on sales in total, but a large negative impact on costs of goods sold (ie. costs increased) sequentially, as well as year-on-year.

Income before taxes for the quarter was Euro -133 million, excluding restructuring charges of Euro 129 million, compared to the profit of Euro 501 million in Q4 2007.  Despite a negative result in the quarter, Sony Ericsson maintained a healthy balance sheet with a strong, net cash position of Euro 1,072 million.

The average selling price (ASP) for Sony Ericsson in Q4 2008 was Euro 121, an increase sequentially but a decrease year-on-year.  The sequential increase of ASP was due to a positive impact of foreign exchange rate fluctuations and to the sale of a higher proportion of high-end models.  Estimated market share for Q4 2008 is maintained at around 8%.

“In economic terms, 2008 has been a tumultuous year with world markets experiencing a serious downturn.  The mobile phone market has been greatly affected by this and as expected, the fourth quarter continued to be very challenging for Sony Ericsson.  Our business alignment is progressing as planned, with the full effect of annual savings of around Euro 300 million expected by the second half of 2009. We foresee a continued deterioration in the market place in 2009, particularly in the first half,” said Dick Komiyama, President, Sony Ericsson.
 

 
The additional cost saving measures initiated by Sony Ericsson are aimed at reducing operating expenses by a further Euro 180 million annually, with the full effect expected at the end of 2009. Sony Ericsson currently estimates that the cost for the additional restructuring activities will be covered by the previously announced Euro 300 million restructuring charges.

In Q4 2008, the successful roll out of the Xperia™ X1 and Cyber-shot™C905; Sony Ericsson’s first eight mega pixel phone as well as the PlayNow™ plus music service positively impacted the business.  In the same quarter, Sony Ericsson announced that it joined the Open Handset Alliance and is currently developing a new phone that uses the Android Open Source software.
 
Earlier in 2008, Sony Ericsson announced that it became a founding member of the Symbian Foundation; an initiative will create an open mobile software platform based on Symbian OS.
 
Sony Ericsson estimates the 2008 global handset market as being around 1,190 million units or around 6% growth from 2007, compared to the company’s previous forecast of around 10%. Sony Ericsson forecasts that the global handset market will contract in 2009 and that the industry ASP will continue to decline.

Cyber-shot™ is a trademark of the Sony Corporation.
The Liquid Identity logo, Xperia™ and the Xperia™ logo and PlayNow™plus are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB.
Sony is a trademark or registered trademark of Sony Corporation.  Ericsson is the trademark or registered trademark of Telefonaktiebolaget LM Ericsson.
Other product and company names mentioned herein may be the trademarks of their respective owners. Any rights not expressly granted herein are reserved. Subject to change without prior notice.

EDITOR’S NOTES:
Financial statements:
Consolidated income statement
Consolidated income statement full year
Consolidated income statement isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of cash flows full year
Consolidated statement of cash flows isolated quarters

Additional information:
Net sales by market area, by quarter

- ENDS -

Sony Ericsson is a top, global industry player with sales of around 97 million phones in 2008.  Diversity is one of the core strengths of the company, with operations in over 80 countries including manufacturing in China and R&D sites in China, Europe, India, Japan and North America.  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 10 719 0858
Susanne Andersson (Stockholm) + 46 10 719 4631

Sony Investor Relations                                                                                     
Shinji Tomita (London) +44 20 7426 8696
Gen Tsuchikawa (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
Simone Bresi-Ando (London) +44 20 8762 5863
 
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
 
   
Oct-Dec
 
EUR million
 
2008
   
2007
   
Change
 
                   
Net sales
    2,914       3,771       -23 %
Cost of sales
    -2,476       -2,573       -4 %
Gross profit
    438       1,198       -63 %
Gross margin %
    15.0 %     31.8 %     -17 %
                         
Research and development expenses
    -359       -349       3 %
Selling and administrative expenses
    -366       -375       -2 %
Operating expenses
    -725       -724       0 %
                         
Other operating income, net
    24       15       62 %
Operating income
    -262       489       -154 %
Operating margin %
    -9.0 %     13.0 %     -22 %
                         
Financial income
    28       19       47 %
Financial expenses
    -27       -7       287 %
Income after financial items
    -261       501       -152 %
                         
Taxes
    81       -118       -169 %
Minority interest
    -7       -10       -28 %
Net income
    -187       373       -150 %
                         
                         
Number of units shipped (million)
    24.2       30.8       -21 %
ASP (EUR)
    121       123       -2 %
                         
                         
                         
                         
EUR Million
 
Oct-Dec
 
Restructuring charges
 
2008
                 
  Cost of sales
    67  
  Research and development expenses
    35                  
  Sales and administrative expenses
    24  
  Other operating income, net
    3                  
Total
    129  
 
 

 
Sony Ericsson
CONSOLIDATED INCOME STATEMENT
 
   
Jan-Dec
 
EUR million
 
2008
   
2007
   
Change
 
                   
Net sales
    11,244       12,916       -13 %
Cost of sales
    -8,750       -8,958       -2 %
Gross profit
    2,494       3,958       -37 %
Gross margin %
    22.2 %     30.6 %     -8 %
                         
Research and development expenses
    -1,379       -1,173       18 %
Selling and administrative expenses
    -1,249       -1,260       -1 %
Operating expenses
    -2,628       -2,432       8 %
                         
Other operating income, net
    21       18       19 %
Operating income
    -113       1,544       -107 %
Operating margin %
    -1.0 %     11.9 %     -13 %
                         
Financial income
    101       62       64 %
Financial expenses
    -71       -32       122 %
Income after financial items
    -83       1,574       -105 %
                         
Taxes
    31       -423       -107 %
Minority interest
    -21       -36       -42 %
Net income
    -73       1,114       -107 %
                         
                         
Number of units shipped (million)
    96.6       103.4       -7 %
ASP (EUR)
    116       125       -7 %
                         
                         
                         
                         
EUR Million
 
Jan-Dec
                 
Restructuring charges
 
2008
                 
  Cost of sales
    75  
  Research and development expenses
    62                  
  Sales and administrative expenses
    29  
  Other operating income, net
    9                  
Total
    175  
 
 

 
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
 
   
2008
   
2007
 
EUR million
    Q4       Q3       Q2       Q1       Q4       Q3       Q2       Q1  
                                                                 
Net sales
    2,914       2,808       2,820       2,702       3,771       3,108       3,112       2,925  
Cost of sales
    -2,476       -2,192       -2,168       -1,914       -2,573       -2,154       -2,192       -2,039  
Gross profit
    438       616       653       788       1,198       954       921       886  
Gross margin %
    15.0 %     21.9 %     23.1 %     29.2 %     31.8 %     30.7 %     29.6 %     30.3 %
                                                                 
Research and development expenses
    -359       -337       -344       -339       -349       -280       -283       -261  
Selling and administrative expenses
    -366       -303       -310       -270       -375       -280       -321       -284  
Operating expenses
    -725       -640       -653       -610       -724       -560       -604       -545  
                                                                 
Other operating income, net
    24       -8       -2       6       15       -1       -2       5  
Operating income
    -262       -33       -2       184       489       393       315       346  
Operating margin %
    -9.0 %     -1.2 %     -0.1 %     6.8 %     13.0 %     12.7 %     10.1 %     11.8 %
                                                                 
Financial income
    28       25       25       24       19       7       18       18  
Financial expenses
    -27       -15       -14       -15       -7       -16       -6       -2  
Income after financial items
    -261       -23       8       193       501       384       327       362  
                                                                 
Taxes
    81       6       0       -57       -118       -109       -97       -100  
Minority interest
    -7       -8       -3       -3       -10       -8       -10       -9  
Net income
    -187       -25       6       133       373       267       220       254  
                                                                 
                                                                 
Number of units shipped (million)
    24.2       25.7       24.4       22.3       30.8       25.9       24.9       21.8  
ASP (EUR)
    121       109       116       121       123       120       125       134  
                                                                 
                                                                 
                                                                 
                                                                 
EUR Million
                   
2008*
                         
Restructuring charges
    Q4       Q3       Q2                                          
  Cost of sales
    67       0       8  
  Research and development expenses
    35       26       2                                          
  Sales and administrative expenses
    24       3       1  
  Other operating income, net
    3       6       0                                          
Total
    129       35       11  
 
* Restructuring charges were not incurred in the first quarter of 2008.

 
Sony Ericsson
CONSOLIDATED BALANCE SHEET
 
   
Dec 31
   
Sep 30
   
Jun 30
   
Dec 31
 
EUR million
 
2008
   
2008
   
2008
   
2007
 
                         
ASSETS
                       
                         
Total fixed and financial assets
    590       649       590       572  
                                 
Current assets
                               
Inventories
    531       717       538       437  
Accounts receivables
    1,629       1,815       1,905       1,870  
Other assets
    585       527       511       345  
Other short-term cash investments
    707       918       966       1,431  
Cash and bank
    418       555       624       724  
Total current assets
    3,870       4,532       4,544       4,808  
                                 
                                 
Total assets
    4,460       5,180       5,134       5,380  
                                 
SHAREHOLDERS' EQUITY AND
LIABILITIES
                               
                                 
Shareholders' equity
    1,217       1,429       1,684       2,026  
Minority interest
    57       50       35       64  
Total equity
    1,274       1,480       1,719       2,090  
                                 
Total long-term liabilities
    30       39       25       26  
                                 
Accounts payable
    990       1,453       1,436       1,263  
Other current liabilities
    2,166       2,208       1,954       2,001  
Total current liabilities
    3,156       3,661       3,390       3,264  
                                 
Total shareholders' equity and liabilities
    4,460       5,180       5,134       5,380  
                                 
Net cash*
    1,072       1,374       1,591       2,155  
                                 
* Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities.
 
 
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
 
   
Oct-Dec
 
EUR million
 
2008
   
2007
 
             
OPERATIONS
           
Net income
    -187       373  
Adjustments to reconcile net income to cash
    37       17  
      -150       390  
                 
Changes in operating net assets
    -168       44  
Cash flow from operating activities
    -318       434  
                 
INVESTMENTS
               
Investing activities
    41       -27  
Cash flow from investing activities
    41       -27  
                 
FINANCING
               
Financing activities
    -46       0  
Cash flow from financing activities
    -46       0  
                 
Net change in cash
    -323       408  
Cash, beginning of period
    1,473       1,758  
Translation difference in Cash
    -25       -10  
Cash, end of period
    1,125       2,155  
 
 
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
 
   
Jan-Dec
 
EUR million
 
2008
   
2007
 
             
OPERATIONS
           
Net income
    -73       1,114  
Adjustments to reconcile net income to cash
    146       107  
      73       1,221  
                 
Changes in operating net assets
    -323       -305  
Cash flow from operating activities
    -250       916  
                 
INVESTMENTS
               
Investing activities
    -64       -164  
Cash flow from investing activities
    -64       -164  
                 
FINANCING
               
Financing activities
    -754       -849  
Cash flow from financing activities
    -754       -849  
                 
Net change in cash
    -1,068       -97  
Cash, beginning of period
    2,155       2,273  
Translation difference in Cash
    37       -21  
Cash, end of period
    1,125       2,155  
 
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
 
   
2008
   
2007
 
EUR million
 
Oct-Dec
   
Jul-Sep
   
Apr-Jun
   
Jan-Mar
   
Oct-Dec
   
Jul-Sep
   
Apr-Jun
   
Jan-Mar
 
                                                 
OPERATIONS
                                               
Net income
    -187       -25       6       133       373       267       220       254  
Adjustments to reconcile net income to cash
    37       39       40       31       17       32       30       28  
      -150       15       46       164       390       299       250       282  
                                                                 
Changes in operating net assets
    -168       88       -142       -101       44       88       16       -454  
Cash flow from operating activities
    -318       102       -96       64       434       387       266       -172  
                                                                 
INVESTMENTS
                                                               
Investing activities
    41       -55       -29       -22       -27       -53       -31       -53  
Cash flow from investing activities
    41       -55       -29       -22       -27       -53       -31       -53  
                                                                 
FINANCING
                                                               
Financing activities
    -46       -238       -8       -462       0       -300       -548       -1  
Cash flow from financing activities
    -46       -238       -8       -462       0       -300       -548       -1  
                                                                 
Net change in cash
    -323       -191       -133       -421       408       34       -312       -226  
Cash, beginning of period
    1,473       1,591       1,711       2,155       1,758       1,730       2,045       2,273  
Translation difference in Cash
    -25       74       13       -24       -10       -6       -3       -2  
Cash, end of period
    1,125       1,473       1,591       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
    Q4       Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    1,642       1,427       1,386       1,494       2,251       1,715       1,729       1,598  
Americas
    636       703       740       486       636       573       499       365  
Asia
    636       678       694       722       884       820       885       961  
Total
    2,914       2,808       2,820       2,702       3,771       3,108       3,112       2,925  
* of which Western Europe
    1,117       947       900       979       1,569       1,103       1,102       1,078  
                                                                 
                                                                 
   
2008
   
2007
 
Sequential change (%)
    Q4       Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    15 %     3 %     -7 %     -34 %     31 %     -1 %     8 %     -26 %
Americas
    -10 %     -5 %     52 %     -24 %     11 %     15 %     37 %     -34 %
Asia
    -6 %     -2 %     -4 %     -18 %     8 %     -7 %     -8 %     -11 %
Total
    4 %     0 %     4 %     -28 %     21 %     0 %     6 %     -23 %
* of which Western Europe
    18 %     5 %     -8 %     -38 %     42 %     0 %     2 %     -27 %
                                                                 
                                                                 
   
2008
   
2007
 
Year over year change (%)
    Q4       Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    -27 %     -17 %     -20 %     -7 %     5 %     7 %     59 %     55 %
Americas
    0 %     23 %     48 %     33 %     15 %     37 %     52 %     46 %
Asia
    -28 %     -17 %     -21 %     -25 %     -18 %     -8 %     4 %     35 %
Total
    -23 %     -10 %     -9 %     -8 %     0 %     7 %     37 %     47 %
* of which Western Europe
    -29 %     -14 %     -18 %     -9 %     6 %     -1 %     47 %     60 %
                                                                 
                                                                 
   
2008
   
2007
 
Year to date
    0812       0809       0806       0803       0712       0709       0706       0703  
Europe, Middle East & Africa *
    5,966       4,324       2,879       1,494       7,293       5,042       3,328       1,598  
Americas
    2,566       1,930       1,226       486       2,072       1,436       864       365  
Asia
    2,712       2,076       1,416       722       3,550       2,666       1,846       961  
Total
    11,244       8,330       5,522       2,702       12,916       9,145       6,037       2,925  
* of which Western Europe
    3,943       2,826       1,879       979       4,852       3,283       2,179       1,078  
                                                                 
                                                                 
   
2008
   
2007
 
YTD year over year change (%)
    0812       0809       0806       0803       0712       0709       0706       0703  
Europe, Middle East & Africa *
    -18 %     -14 %     -13 %     -7 %     24 %     36 %     57 %     55 %
Americas
    24 %     34 %     42 %     33 %     34 %     44 %     49 %     46 %
Asia
    -24 %     -22 %     -23 %     -25 %     0 %     8 %     18 %     35 %
Total
    -13 %     -9 %     -9 %     -8 %     18 %     27 %     42 %     47 %
* of which Western Europe
    -19 %     -14 %     -14 %     -9 %     21 %     29 %     53 %     60 %