Form 6-K
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 April 2008
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: April 23, 2008
List of materials
Documents attached hereto:
i) Press release announcing Sony Ericsson continues to invest for future growth
Sony Ericsson
PRESS RELEASE April 23, 2008
Sony Ericsson continues to invest for future growth
Q1 Highlights:
- Year-on-year volume growth of 2%
- Income before taxes at higher end of forecast
- R&D investment continues to expand portfolio and addressable market
- New sub-brand XPERIA(TM) added to portfolio
The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the first quarter ended March 31, 2008 is as follows:
Q1 2007 Q4 2007 Q1 2008
_______ _______ _______
Number of units shipped (million) 21.8 30.8 22.3
Sales (Euro m.) 2,925 3,771 2,702
Gross margin (%) 30.3% 31.8% 29.2%
Operating income (Euro m.) 346 489 181
Operating income (%) 11.8% 13.0% 6.7%
Income before taxes (Euro m.) 362 501 193
Net income (Euro m.) 254 373 133
Average sales price (Euro) 134 123 121
Units shipped in the quarter were 22.3 million, a 2% increase compared to the
same period last year and in line with our March 19, 2008 interim announcement
of 22 million units. Sales for the quarter were Euro 2,702 million, a decrease
of 8% on a year ago due to slowing market growth in mid-to-high end phones in
markets where Sony Ericsson has a strong presence. Gross margin was one
percentage point lower than Q1 2007, reflecting a less favourable product mix.
Income before taxes for the quarter was Euro 193 million, which was at the
higher end of the range (Euro 150-200 million) we announced on March 19, 2008.
This represented a decrease of 47% compared with a year ago, due to higher R&D
investments as a percentage of sales, and reflecting that Q1 2007 was a
particularly strong first quarter for the company. Net income for the quarter
was 48% lower, at Euro 133 million.
"Sony Ericsson continues to invest in expanding its product portfolio to appeal
to a wider variety of consumers in both new and existing markets," said Dick
Komiyama, President, Sony Ericsson. "Our product announcements during the first
quarter have been well received by the industry, and we expect to see a positive
effect from these announcements during the second half of 2008."
During the quarter, Sony Ericsson added a new sub-brand to its product portfolio
with the announcement of the XPERIA(TM) X1, a high-end multi-media convergence
phone based on Windows Mobile(R), which will launch in the second half of the
year. In addition, the company announced a number of new phones during the
quarter to increase the appeal of its brand to a broader audience. These
included new high-end Walkman(R) and HSDPA web phones, such as the W980, W760,
Z770 models and also added to its cutting-edge Cyber-shot(TM) range with models
such as the C702 and C902.
Average selling price (ASP) decreased both sequentially and year-on-year due to
the impact of softer sales of high-to-mid end models in key markets. Market
share for the quarter is estimated to be around 8%, down one percentage point
sequentially.
Sony Ericsson made a dividend payment of Euro 470 million during the quarter to
the parent companies. A second dividend payment will be made this year.
Sony Ericsson forecasts that the global handset market for 2008 will grow at a
rate of around 10% from more than 1.1 billion units in 2007. The majority of
this growth is expected to be in emerging markets.
XPERIA(TM) is a trademark of Sony Ericsson Mobile Communications
WALKMAN(R) and Cyber-shot(TM) are trademarks or registered trademarks of Sony
Corporation
Microsoft and Windows Mobile(R) are trademarks of Microsoft Corporation
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 -
Having sold over 100 million phones in 2007, Sony Ericsson is currently one of
the five largest mobile phone manufacturers in the world. An important industry
player operating in over 80 countries, our phones, accessories and PC cards are
synonymous with innovation and style. With R&D sites in Europe, Japan, China,
India and North America, diversity is one of the core strengths of the company.
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 8 719 0858
Sony investor relations
Shinji Tomita (London) +44 20 7444 9713
Tatsuyuki Sonoda (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
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
Jan-Mar
____________________________________
EUR million 2008 2007 Change
____________________________________________________________________________
Net sales 2,702 2,925 -8%
Cost of sales -1,914 -2,039 -6%
______________________
Gross profit 788 886 -11%
Gross margin % 29.2% 30.3% -1%
Research and development expenses -339 -261 30%
Selling and administrative expenses -270 -284 -5%
______________________
Operating expenses -610 -545 12%
Other operating income, net 3 5 -36%
______________________
Operating income 181 346 -48%
Operating margin % 6.7% 11.8% -5%
Financial income 22 18 24%
Financial expenses -10 -2 -
______________________
Income after financial items 193 362 -47%
Taxes -57 -100 -43%
Minority interest -3 -9 -63%
______________________
Net income 133 254 -48%
Number of units shipped (million) 22.3 21.8 2%
ASP (EUR) 121 134 -10%
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2008 2007
________ _____________________________________
EUR million Q1 Q4 Q3 Q2 Q1
___________________________________ _____________________________________
Net sales 2,702 3,771 3,108 3,112 2,925
Cost of sales -1,914 -2,573 -2,154 -2,192 -2,039
________ _____________________________________
Gross profit 788 1,198 954 921 886
Gross margin % 29.2% 31.8% 30.7% 29.6% 30.3%
Research and development -339 -349 -280 -283 -261
expenses
Selling and administrative -270 -375 -280 -321 -284
expenses
________ _____________________________________
Operating expenses -610 -724 -560 -604 -545
Other operating income, 3 15 -1 -2 5
net
________ _____________________________________
Operating income 181 489 393 315 346
Operating margin % 6.7% 13.0% 12.7% 10.1% 11.8%
Financial income 22 19 7 18 18
Financial expenses -10 -7 -16 -6 -2
________ _____________________________________
Income after financial 193 501 384 327 362
items
Taxes -57 -118 -109 -97 -100
Minority interest -3 -10 -8 -10 -9
________ _____________________________________
Net income 133 373 267 220 254
Number of units shipped 22.3 30.8 25.9 24.9 21.8
(million)
ASP (EUR) 121 123 120 125 134
Sony Ericsson
CONSOLIDATED BALANCE SHEET
Mar 31 Dec 31 Mar 31
EUR million 2008 2007 2007
_________________________________________________________________
ASSETS
Total fixed and financial assets 594 572 495
Current assets
Inventories 484 437 498
Accounts receivables 1,710 1,870 1,566
Other assets 369 345 859
Other short-term cash investments 1,106 1,431 1,376
Cash and bank 605 724 668
_______ _______ _______
Total current assets 4,274 4,808 4,968
_________________________________________________________________
Total assets 4,868 5,380 5,463
_________________________________________________________________
SHAREHOLDERS' EQUITY AND
LIABILITIES
Shareholders' equity 1,665 2,026 2,033
Minority interest 69 64 55
_______ _______ _______
Total equity 1,734 2,090 2,088
Total long-term liabilities 25 26 22
Accounts payable 1,228 1,263 1,316
Other current liabilities 1,880 2,001 2,037
_______ _______ _______
Total current liabilities 3,108 3,264 3,353
_________________________________________________________________
Total shareholders' equity and 4,868 5,380 5,463
liabilities
_________________________________________________________________
Net cash* 1,703 2,155 2,045
* 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 2008 2007
____________________________________________________________________
OPERATIONS
Net income 133 254
Adjustments to reconcile net income to 31 28
cash
__________________________
164 282
Changes in operating net assets -101 -454
__________________________
Cash flow from operating activities 64 -172
INVESTMENTS
Investing activities -22 -53
__________________________
Cash flow from investing activities -22 -53
FINANCING
Financing activities -462 - 1
__________________________
Cash flow from financing activities -462 -1
Net change in cash -421 -226
Cash, beginning of period 2,155 2,273
Translation difference in Cash -24 -2
__________________________
Cash, end of period 1,711 2,045
____________________________________________________________________
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar
____________________________________________
EUR million 2008 2007 2007 2007 2007
____________________________________________________________________________
OPERATIONS
Net income 133 373 267 220 254
Adjustments to reconcile net 31 17 32 30 28
income to cash
____________________________________________
164 390 299 250 282
Changes in operating net assets -101 44 88 16 -454
____________________________________________
Cash flow from operating 64 434 387 266 -172
activities
INVESTMENTS
Investing activities -22 -27 -53 -31 -53
____________________________________________
Cash flow from investing -22 -27 -53 -31 -53
activities
FINANCING
Financing activities -462 0 -300 -548 -1
____________________________________________
Cash flow from financing -462 0 -300 -548 -1
activities
Net change in cash -421 408 34 -312 -226
Cash, beginning of period 2,155 1,758 1,730 2,045 2,273
Translation difference in Cash -24 -10 -6 -3 -2
____________________________________________
Cash, end of period 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 Q1 Q4 Q3 Q2 Q1
___________________________________________________________________________
Europe, Middle East & Africa * 1,494 2,251 1,715 1,729 1,598
Americas 486 636 573 499 365
Asia 722 884 820 885 961
___________________________________________________________________________
Total 2,702 3,771 3,108 3,112 2,925
___________________________________________________________________________
* of which Western Europe 979 1,569 1,103 1,102 1,078
2008 2007
________ _____________________________
Sequential change (%) Q1 Q4 Q3 Q2 Q1
___________________________________________________________________________
Europe, Middle East & Africa * -34% 31% -1% 8% -26%
Americas -24% 11% 15% 37% -34%
Asia -18% 8% -7% -8% -11%
___________________________________________________________________________
Total -28% 21% 0% 6% -23%
___________________________________________________________________________
* of which Western Europe -38% 42% 0% 2% -27%
2008 2007
________ _____________________________
Year over year change (%) Q1 Q4 Q3 Q2 Q1
___________________________________________________________________________
Europe, Middle East & Africa * -7% 5% 7% 59% 55%
Americas 33% 15% 37% 52% 46%
Asia -25% -18% -8% 4% 35%
___________________________________________________________________________
Total -8% 0% 7% 37% 47%
___________________________________________________________________________
* of which Western Europe -9% 6% -1% 47% 60%
2008 2007
________ _____________________________
Year to date 0803 0712 0709 0706 0703
___________________________________________________________________________
Europe, Middle East & Africa * 1,494 7,293 5,042 3,328 1,598
Americas 486 2,072 1,436 864 365
Asia 722 3,550 2,666 1,846 961
___________________________________________________________________________
Total 2,702 12,916 9,145 6,037 2,925
___________________________________________________________________________
* of which Western Europe 979 4,852 3,283 2,179 1,078
2008 2007
________ _____________________________
YTD year over year change (%) 0803 0712 0709 0706 0703
___________________________________________________________________________
Europe, Middle East & Africa * -7% 24% 36% 57% 55%
Americas 33% 34% 44% 49% 46%
Asia -25% 0% 8% 18% 35%
___________________________________________________________________________
Total -8% 18% 27% 42% 47%
___________________________________________________________________________
* of which Western Europe -9% 21% 29% 53% 60%