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Sony Ericsson Releases Q4 results! |
se_dude
Joined: Nov 07, 2007
Posts: > 500
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ighlights:
* 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(TM) X1, Cyber-shot(TM)C905 phones and PlayNow(TM) plus music service
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(TM) X1 and Cyber-shot(TM)C905; Sony Ericsson's first eight mega pixel phone as well as the PlayNow(TM) 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(TM) is a trademark of the Sony Corporation.
The Liquid Identity logo, Xperia(TM) and the Xperia(TM) logo and PlayNow(TM)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.
http://money.cnn.com/news/new[....]rticles/marketwire/0466581.htm
Well, losses again this time around.Though restructuring costs were higher than the last Quarter.Sales have gone down too.
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SilveR.
Joined: May 03, 2002
Posts: > 500
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This year will be also difficult for SE, the first half will be very... |
S4k1s
Joined: Mar 09, 2005
Posts: > 500
From: Sweden
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Press Release here.
What pisses me off is that reports from Sweden say that  will freeze the salary (the annual raise) of the workers for one year. |
Mizzle
Joined: Oct 06, 2006
Posts: > 500
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On 2009-01-16 15:01:29, S4k1s wrote:
Press Release here.
What pisses me off is that reports from Sweden say that will freeze the salary (the annual raise) of the workers for one year.
Rather that than 1 or 2% of the workers getting fired. |
bodeh6
Joined: Dec 14, 2006
Posts: > 500
From: U.S.A
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Its not the best but hopefully they have a better 2009. More hi-end devices are needed.
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SilveR.
Joined: May 03, 2002
Posts: > 500
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hopefully we see something good stuffs from SE second half of this year.. more Highends it will be how ever.. |
S4k1s
Joined: Mar 09, 2005
Posts: > 500
From: Sweden
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On 2009-01-16 15:38:45, Mizzle wrote:
On 2009-01-16 15:01:29, S4k1s wrote:
Press Release here.
What pisses me off is that reports from Sweden say that will freeze the salary (the annual raise) of the workers for one year.
Rather that than 1 or 2% of the workers getting fired.
did fire a lot of people already.
The people let go will still get the raise, but the people still with the company won't - lol
need to invest in R & D to fix this, not to mess with the little worker. |
Mizzle
Joined: Oct 06, 2006
Posts: > 500
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S4k1s,
You don't say. I had no idea they had done that.
It was a necessary cut, and so is removing the raise.
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jack00
Joined: Feb 20, 2003
Posts: > 500
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On 2009-01-16 17:43:31, S4k1s wrote:
On 2009-01-16 15:38:45, Mizzle wrote:
On 2009-01-16 15:01:29, S4k1s wrote:
Press Release here.
What pisses me off is that reports from Sweden say that will freeze the salary (the annual raise) of the workers for one year.
Rather that than 1 or 2% of the workers getting fired.
did fire a lot of people already.
The people let go will still get the raise, but the people still with the company won't - lol
need to invest in R & D to fix this, not to mess with the little worker.
current crisis aren't allowing to lean out too much of the window. playing save is the right strategy to get over the crisis without any scars |
TeknoBoi90
Joined: Mar 08, 2008
Posts: 164
From: Piemonte, Italy
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It canseem strange but regarding to -SE- situation i'm more confident now than 6 onths ago. Just look at the world outside, can you find one company that has reached good results in this period??
The economical situation is critical almost everywhere and SE isn't that worse respect to the others...
At least they have increased the average price, this means that they have sold more high-ends like C905 etc... |
Nitro Fan
Joined: Jun 11, 2003
Posts: > 500
From: London
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On 2009-01-16 16:45:45, bodeh6 wrote:
Its not the best but hopefully they have a better 2009. More hi-end devices are needed.
WRONG! What is needed is a firm strategy, some gifted leadership, a clear direction and a new development & testing team.
High end products are the result of a successful "bread & Butter" strategy and wouldnt know one of those if it bit them on the arse! "Johnny X" anyone remember that farce?
Apparently Android is going to be the saviour of and with losses of €73 million they must have their fingers and toes crossed! What happened to that cutting edge innovative company Ericsson? SONY thats what.
I have owned the ... T68i T610, P800, P900, P910, P990, W950, P1, W960 But SE have now totally lost the plot. |
gola
Joined: Jul 17, 2007
Posts: > 500
From: South Africa
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...i agree, SE needs a Nokia insider working for them 
"Getting wisdom is the wisest thing you can do!"
Proverbs 4: 7 |
Supa_Fly
Joined: Apr 16, 2002
Posts: > 500
From: Toronto, Ontario
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On 2009-01-16 15:01:29, S4k1s wrote:
Press Release here.
What pisses me off is that reports from Sweden say that will freeze the salary (the annual raise) of the workers for one year.
Sorry but if internal security cannot stop those with a Press Badge from stealing $90'000 worth of prototype products = effectively delaying research, its a logical decision. Add to that the world economy is diminishing VERY fast to things like GREED! Don't expect a raise just because of employment or seniority! This is what got us ALL in this present economic climate in the FIRST place! Mostly from top executives of MANY companys'
Even the mighty & fat feed luxury cat darling of the market trading world Google has made layoffs - or soon will - and froze trips on luxury flights.
So its a necessary step. |
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Posted: 2009-01-16 09:42
