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Sony Ericsson reports first quarter results 2009 |
masseur
Joined: Jan 03, 2003
Posts: > 500
From: Sydney, London
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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 | Q12009 | | Numberofunitsshipped(million) | 22.3 | 24.2 | 14.5 | | Sales(Eurom.) | 2,702 | 2,914 | 1,736 | | Grossmargin(%) | 29% | 15% | 8% | | Operatingincome(Eurom.) | 184 | -262 | -369 | | Operatingmargin(%) | 7% | -9% | -21% | | Restructuringcharges(Eurom.) | - | 129 | 12 | Operatingincomeexcl.restructuring
charges(Eurom.) | - | -133 | -357 | | Operatingmarginexcl.restructuringcharges(%) | - | -5% | -21% | | Incomebeforetaxes(IBT)(Eurom.) | 193 | -261 | -370 | | IBTexcl.restructuringcharges(Eurom.) | - | -133 | -358 | | Netincome(Eurom.) | 133 | -187 | -293 | | | | | |
| Averagesellingprice(Euro) | 121 | 121 | 120 |
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.
[ This Message was edited by: masseur on 2009-04-17 09:24 ] |
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goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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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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c96sthl
Joined: Mar 31, 2002
Posts: > 500
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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. |
Brightspark
Joined: Aug 19, 2007
Posts: 326
From: UK
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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.
[ This Message was edited by: Brightspark on 2009-04-17 12:15 ] |
gola
Joined: Jul 17, 2007
Posts: > 500
From: South Africa
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Shocking 
"Getting wisdom is the wisest thing you can do!"
Proverbs 4: 7 |
Bonovox
Joined: Apr 13, 2008
Posts: > 500
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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 ] |
se_dude
Joined: Nov 07, 2007
Posts: > 500
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Cant wait for 28th May.  |
dancingfate
Joined: Sep 25, 2004
Posts: > 500
From: Jakarta, Indonesia
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I just wonder how SE's loss compare to Motorola...
Apple iPhone 4, HTC Evo 3D, HTC Sensation, HTC Inspire 4G, HTC Desire S, HTC Wildfire, S001, SO905iCS, T650 (Gold & Green), C901, W800, K660, K700, Beibei (G702), Severine (DEAD) |
Bonovox
Joined: Apr 13, 2008
Posts: > 500
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Motorola? Who? Lol i cant even remember what their last model was
Phone?? What phone?? |
Tsepz_GP
Joined: Dec 27, 2006
Posts: > 500
From: Johannesburg, South Africa
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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. 
Phone: iPhone 15 Pro Max Black Ti 512GB
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Brightspark
Joined: Aug 19, 2007
Posts: 326
From: UK
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On 2009-04-17 20:29:00, Bonovox wrote:
Motorola? Who? Lol i cant even remember what their last model was
i can remember many of their innovations in the mobile word - a significant number, and which follows that the mobile world would be much less progressed than it is if it weren't for moto.
[ This Message was edited by: Brightspark on 2009-04-18 00:59 ] |
goldenface
Joined: Dec 17, 2003
Posts: > 500
From: Liverpool City Centre
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Moto are great. They just put all their eggs in one basket handset wise (RAZR) and unfortunately fell by the wayside.
I still hope they make some sort of comeback.
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Bonovox
Joined: Apr 13, 2008
Posts: > 500
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No sorry you hear me wrong. I never said Motorola were crap. I know they are quite good have invented some good tech and they have their good points. What i was saying was i cant remember what their last model was they released. They have been so quiet lately. I know Moto have made some cracking phones but they lost their way. Shame.
Phone?? What phone?? |
mario2004
Joined: Sep 16, 2006
Posts: > 500
From: South Africa
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On 2009-04-17 10:23:42, goldenface wrote:
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.
Hmmm . . . Let me put it this way, you are not exactly into business managing and economic analyse. How do I know that - your turn to guess Your last sentence is exactly the opposit of what should/will happen, that is if you still want to see/have SE, this time next year! Their market share dropped to only 6%. I bet if it weren't for Sagem (silent but 'hard working' low end partner), SE should have dropped to half of 6%
On the other hand NOKIA's profit dropped to just under 500million Euro. Not bad but still . . . And NOKIA must 'cover' Navtek's and NOKIA-SIEMENS networking's losses ! Even after that,NOKIA still post a 100+ million Euro profit for the quarter
'Better govern our selfs the wrong way, then be governed by 'others' the right way.'
- Robert Mugabe - Freedom fighter comarade, peoples hero and President of Zimbabwe. |
se_dude
Joined: Nov 07, 2007
Posts: > 500
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Well. Everyone has bad days. i dont think Nokia came into fortune right from the word go wither. SE is a new company. they have been profitting very much since the last few years they have been in business. So, a slump shouldnt be too much of a worry. they have been losing for the last couple of quarters.
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Posted: 2009-04-17 10:09
