a5805523.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 October 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: October 17, 2008

List of materials

Documents attached hereto:
 
i) Press release announcing Sony Ericsson's third quarter results.

 
PRESS RELEASE
October 17, 2008
 
Sony Ericsson reports third quarter results
 
Q3 highlights:
· 
Break even results, excluding restructuring charges, as challenging business conditions continued
·  
C902 Cyber-shot™ camera phone is hit model of the quarter
·  
First Xperia™ branded multimedia phone X1 began shipping
·  
Expansion of music service offering with announcement of PlayNow™ plus
 
London, UK - The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the third quarter ended September 30, 2008 is as follows:
 
     
Q3 2008
     
Q2 2008
     
 Q3 2007
 
Number of units shipped (million)
    25.7       24.4       25.9  
Sales (Euro m.)
    2,808       2,820       3,108  
Gross margin (%)
    22 %     23 %     31 %
Operating income (Euro m.)
    -33       -2       393  
Operating margin (%)
    -1 %     -0 %     13 %
   Restructuring charges (Euro m.)
    35       11       0  
   Operating income excl. restructuring charges (Euro m.)
    2       8       393  
   Operating margin excl. restructuring charges (%)
    0 %     0 %     13 %
Income before taxes (IBT) (Euro m.)
    -23       8       384  
   IBT excl. restructuring charges (Euro m.)
    12       19       384  
Net income (Euro m.)
    -25       6       267  
                         
Average selling price (Euro)
    109       116       120  
 
Units shipped in the quarter were 25.7 million, a sequential increase but flat year-on-year, while sales for the quarter were Euro 2,808 million, a decrease of 10% compared to the third quarter of 2007.  Most of this decrease reflects the impact of exchange rate fluctuations, as well as a shift of the product mix to more lower priced phones. Gross margin also decreased year-on-year and sequentially due to continued price pressure at a time of adverse cost trends in the supplier base. This was partially mitigated by the introduction of new products at the end of the second quarter, such as the C902 Cyber-shot™ camera phone, which is selling well; however, strong competition continues, particularly in Europe. Income before taxes for the quarter was Euro 12 million, excluding restructuring charges of Euro 35 million, a decrease compared to the third quarter of 2007.
 
Average selling price (ASP) for Sony Ericsson decreased both sequentially and year-on-year in line with levels seen in previous quarters. This is due to selling more lower priced phones and increased price competition in the market for mid- to high-end phones. Sequentially, market share for the third quarter remained flat and is estimated to be around 8%.
 
“As expected the third quarter has continued to be challenging for Sony Ericsson. We have moved forward with our plans to align operations and resources with the consolidation of R&D facilities into a more agile and cost efficient organisational structure. As previously announced, our target remains to reduce operating expenses by Euro 300 million annually by the end of the second quarter 2009, with the full effects expected to appear in the second half of 2009. These plans are progressing in line with expectations,” said Dick Komiyama, President, Sony Ericsson. “We are committed to executing our alignment plan as speedily as possible to ensure we have the right size and organisational structure to return the business to healthy profitability.”

During the third quarter Sony Ericsson announced PlayNow™ plus, the next step in its music service offering. PlayNow™ plus is a high speed and high quality music download service for both the phone and PC that will launch in the fourth quarter with Telenor in Sweden with a special edition Sony Ericsson W902 Walkman® phone integrated with the PlayNow™ plus service. Further roll-outs of the service are planned with other network partners around the world in early 2009.
 
Sony Ericsson also announced a number of new phones in the quarter, including three new Walkman® phones, its first UMA handset (G705u) and the first models with integrated You Tube™ connectivity (W595, W902, G705). In addition, Sony Ericsson started a major marketing initiative to launch its first multimedia convergence phone under the new sub-brand; Xperia™, and started shipping the phone, the Xperia™ X1, at the end of the quarter.
 
As communicated previously, Sony Ericsson paid a second dividend to the parent companies totalling Euro 300 million (Euro 150 million each) in the quarter based on 2007 earnings, and at the end of September 2008 Sony Ericsson had net cash of Euro 1.4 billion.
 
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, while the industry ASP will continue to decline. The majority of this growth is expected to be in emerging markets where lower priced phones dominate.

Cyber-shot™ and WALKMAN® are trademarks of Sony Corporation.
The Liquid Identity logo, Xperia™ and the Xperia™ logo and PlayNoware 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 and additional information:

Financial statements:

Consolidated income statement  (2)
Consolidated income statement – isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows (2)
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 over 100 million phones in 2007. 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 8 719 0858
Susanne Andersson (Stockholm) + 46 8 719 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

   
Jul-Sep
 
EUR million
 
2008
   
2007
   
Change
 
                   
Net sales
    2,808       3,108       -10 %
Cost of sales
    -2,192       -2,154       2 %
Gross profit
    616       954       -35 %
Gross margin %
    21.9 %     30.7 %     -9 %
                         
Research and development expenses
    -337       -280       20 %
Selling and administrative expenses
    -303       -280       8 %
Operating expenses
    -640       -560       14 %
                         
Other operating income, net
    -8       -1       -586 %
Operating income
    -33       393       -108 %
Operating margin %
    -1.2 %     12.7 %     -14 %
                         
Financial income
    25       7       274 %
Financial expenses
    -15       -16       -11 %
Income after financial items
    -23       384       -106 %
                         
Taxes
    6       -109       -106 %
Minority interest
    -8       -8       1 %
Net income
    -25       267       -109 %
                         
                         
Number of units shipped (million)
    25.7       25.9       -1 %
ASP (EUR)
    109       120       -9 %


EUR million
 
Jul-Sep
 
Restructuring charges
 
2008
 
 Cost of sales
    0  
 Research and development expenses
    26  
 Sales and administrative expenses
    3  
 Other operating income, net
    6  
Total
    35  
 

Sony Ericsson
CONSOLIDATED INCOME STATEMENT

   
Jan-Sep
 
EUR million
 
2008
   
2007
   
Change
 
                   
Net sales
    8,330       9,145       -9 %
Cost of sales
    -6,274       -6,384       -2 %
Gross profit
    2,056       2,760       -26 %
Gross margin %
    24.7 %     30.2 %     -6 %
                         
Research and development expenses
    -1,020       -824       24 %
Selling and administrative expenses
    -883       -885       0 %
Operating expenses
    -1,903       -1,709       11 %
                         
Other operating income, net
    -3       2       -239 %
Operating income
    149       1,055       -86 %
Operating margin %
    1.8 %     11.5 %     -10 %
                         
Financial income
    73       43       72 %
Financial expenses
    -44       -25       76 %
Income after financial items
    179       1,073       -83 %
                         
Taxes
    -50       -306       -84 %
Minority interest
    -14       -27       -47 %
Net income
    114       741       -85 %
                         
                         
Number of units shipped (million)
    72.5       72.6       0 %
ASP (EUR)
    115       126       -9 %


EUR million
 
Jan-Sep
 
Restructuring charges
 
2008
 
 Cost of sales
    8  
 Research and development expenses
    28  
 Sales and administrative expenses
    4  
 Other operating income, net
    6  
Total
    46  
 

Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS

   
2008
   
2007
 
EUR million
    Q3       Q2       Q1       Q4       Q3       Q2       Q1  
                                                         
Net sales
    2,808       2,820       2,702       3,771       3,108       3,112       2,925  
Cost of sales
    -2,192       -2,168       -1,914       -2,573       -2,154       -2,192       -2,039  
Gross profit
    616       653       788       1,198       954       921       886  
Gross margin %
    21.9 %     23.1 %     29.2 %     31.8 %     30.7 %     29.6 %     30.3 %
                                                         
Research and development expenses
    -337       -344       -339       -349       -280       -283       -261  
Selling and administrative expenses
    -303       -310       -270       -375       -280       -321       -284  
Operating expenses
    -640       -653       -610       -724       -560       -604       -545  
                                                         
Other operating income, net
    -8       -2       6       15       -1       -2       5  
Operating income
    -33       -2       184       489       393       315       346  
Operating margin %
    -1.2 %     -0.1 %     6.8 %     13.0 %     12.7 %     10.1 %     11.8 %
                                                         
Financial income
    25       25       24       19       7       18       18  
Financial expenses
    -15       -14       -15       -7       -16       -6       -2  
Income after financial items
    -23       8       193       501       384       327       362  
                                                         
Taxes
    6       0       -57       -118       -109       -97       -100  
Minority interest
    -8       -3       -3       -10       -8       -10       -9  
Net income
    -25       6       133       373       267       220       254  
                                                         
                                                         
Number of units shipped (million)
    25.7       24.4       22.3       30.8       25.9       24.9       21.8  
ASP (EUR)
    109       116       121       123       120       125       134  


EUR million
 
2008
 
Restructuring charges
    Q3       Q2  
 Cost of sales
    0       8  
 Research and development expenses
    26       2  
 Sales and administrative expenses
    3       1  
 Other operating income, net
    6       0  
Total
    35       11  
 

Sony Ericsson
CONSOLIDATED BALANCE SHEET

   
Sep 30
   
Jun 30
   
Dec 31
   
Sep 30
 
EUR million
 
2008
   
2008
   
2007
   
2007
 
                         
ASSETS
                       
                         
Total fixed and financial assets
    649       590       572       511  
                                 
Current assets
                               
Inventories
    717       538       437       620  
Accounts receivables
    1,815       1,905       1,870       1,803  
Other assets
    527       511       345       544  
Other short-term cash investments
    918       966       1,431       954  
Cash and bank
    555       624       724       804  
Total current assets
    4,532       4,544       4,808       4,725  
                                 
                                 
Total assets
    5,180       5,134       5,380       5,236  
                                 
SHAREHOLDERS' EQUITY AND LIABILITIES
                               
                                 
Shareholders' equity
    1,429       1,684       2,026       1,663  
Minority interest
    50       35       64       70  
Total equity
    1,480       1,719       2,090       1,733  
                                 
Total long-term liabilities
    39       25       26       22  
                                 
Accounts payable
    1,453       1,436       1,263       1,602  
Other current liabilities
    2,208       1,954       2,001       1,879  
Total current liabilities
    3,661       3,390       3,264       3,481  
                                 
Total shareholders' equity and liabilities
    5,180       5,134       5,380       5,236  
                                 
Net cash*
    1,374       1,591       2,155       1,758  
 
* Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities.
 

Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Jul-Sep
 
EUR million
 
2008
   
2007
 
             
OPERATIONS
           
Net income
    -25       267  
Adjustments to reconcile net income to cash
    39       32  
      15       299  
                 
Changes in operating net assets
    88       88  
Cash flow from operating activities
    102       387  
                 
INVESTMENTS
               
Investing activities
    -55       -53  
Cash flow from investing activities
    -55       -53  
                 
FINANCING
               
Financing activities
    - 238       - 300  
Cash flow from financing activities
    -238       -300  
                 
Net change in cash
    -191       34  
Cash, beginning of period
    1,591       1,730  
Translation difference in Cash
    74       -6  
Cash, end of period
    1,473       1,758  
 

Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Jan-Sep
 
EUR million
 
2008
   
2007
 
             
OPERATIONS
           
Net income
    114       741  
Adjustments to reconcile net income to cash
    109       90  
      223       831  
                 
Changes in operating net assets
    -155       -349  
Cash flow from operating activities
    68       482  
                 
INVESTMENTS
               
Investing activities
    -105       -138  
Cash flow from investing activities
    -105       -138  
                 
FINANCING
               
Financing activities
    - 708       -849  
Cash flow from financing activities
    -708       -849  
                 
Net change in cash
    -745       -504  
Cash, beginning of period
    2,155       2,273  
Translation difference in Cash
    62       -11  
Cash, end of period
    1,473       1,758  
 

Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS

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