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Sony Ericsson reports fourth quarter and full year 2010 results |
tranced
Joined: Jan 19, 2006
Posts: > 500
From: Santo Domingo, wonDeRland
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20 January 2011
Highlights:- Four consecutive quarters of profitability during 2010
- Improvement of Euro 1.1 billion of income before taxes, excluding restructuring charges, for the full year
- Over 9 million Android-based Xperia™ phones shipped since launch
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the fourth quarter and full year ended December 31, 2010 is as follows:
Bert Nordberg, President & CEO of Sony Ericsson commented, “2010 was a turnaround year for Sony Ericsson. Our four consecutive quarters of profit reflect the success of our shift towards an Android-based smartphone portfolio. We will celebrate the 10th anniversary of the creation of Sony Ericsson in 2011, and as shown by the recently announced Xperia™ arc, we will continue to focus on delivering the most entertaining smartphones worldwide.”
Income before taxes, excluding restructuring charges, was Euro 189 million for the full year 2010, compared with a loss of Euro 878 million in 2009. The improvement of approximately Euro 1.1 billion was driven by the success of a streamlined product portfolio focused on higher-end smartphones and an improved cost structure. Sales for the full year 2010 were Euro 6,294 million, a decrease of 7% from 2009, while gross margin improved from 15% in 2009 to 29%, in 2010.
During 2010 Sony Ericsson completed its company-wide transformation programme, improving its cost of sales ratio, reducing its global workforce by approximately 4,000 people in total, consolidating its facilities worldwide and decreasing annual operating expenses by more than Euro 880 million. The total restructuring charges for the transformation programme were Euro 381 million.
Units shipped during the fourth quarter were 11.2 million, a year-on-year decrease of 23%, consistent with the streamlining of the portfolio to focus on higher-end smartphones. The sequential increase of 8%, related to seasonal factors, was somewhat constrained by a lack of new product launches during the quarter. Average selling price (ASP) for the quarter was Euro 136, a 13% increase year-on-year. ASP decreased 12% sequentially, mainly due to price erosion, foreign exchange and product mix. Sales for the quarter were Euro 1,528 million, a decrease of 13% year-on-year and a decrease of 5% sequentially.
The gross margin for the fourth quarter was 30%, an increase of 7 percentage points year-on-year and essentially flat sequentially, including the benefit of some one-time items, relating to certain royalty matters and warranty estimates.
Income before taxes for the fourth quarter, excluding restructuring charges, was a profit of Euro 39 million, an increase of Euro 79 million year-on-year and a decrease of Euro 27 million sequentially, mainly due to lower sales.
Sony Ericsson’s net cash position as of December 31, 2010 was Euro 375 million. The negative cash flow from operating activities for the quarter was Euro 128 million, mainly due to increases in inventory due to seasonal factors as well as payments related to the transformation programme.
During the quarter term loan facilities of Euro 150 million matured and were repaid in full.
Sony Ericsson estimates that the global handset market for the full year 2010 increased slightly in volume to almost 1.2 billion units. The company estimates that the global handset market for the fourth quarter was essentially flat year-on-year and its market share for the fourth quarter was approximately 3% in units and approximately 5% in value. Sony Ericsson estimates that its market share for the full year 2010 was approximately 4% in units and approximately 6% in value.
Sony Ericsson forecasts modest growth in units in the global handset market for 2011.
Press
[ This Message was edited by: tranced on 2011-01-20 10:10 ] | |
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Platia1
Joined: Dec 14, 2008
Posts: 242
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I think Q1 will be very bad for them, unless the Arc is released early in March
But Q2 will be very good, possibly good enough to offset any loses, or lack of profit they have in Q1. |
tranced
Joined: Jan 19, 2006
Posts: > 500
From: Santo Domingo, wonDeRland
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Q1 hasn't been a good period for any manufacturer.
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Tsepz_GP
Joined: Dec 27, 2006
Posts: > 500
From: Johannesburg, South Africa
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That's great news, hopefuly 2011 will be even better now that they are more "comfy" with Android and have direction. I just read one of the MOST positive previews of an SE product from Eldar at M-R, checkout the SE MT15i (Hallon/Vivaz2) preview: http://www.mobile-review.com/review/sonyericsson-vivaz2-en.shtml things are realy looking to be getting better at SE. 
[ This Message was edited by: Tsepz_GP on 2011-01-20 11:25 ] Phone: iPhone 15 Pro Max Black Ti 512GB
Tablet: iPad Pro 11” 2020 Space Gray 256GB
Watch: Series 3 Nike Edition Space Gray
Droid: Huawei Mate 40 Pro 256GB |
gayannr
Joined: Jun 23, 2008
Posts: 499
From: Sri Lanka
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On 2011-01-20 12:23:07, Tsepz_GP wrote:
That's great news, hopefuly 2011 will be even better now that they are more "comfy" with Android and have direction. I just read one of the MOST positive previews of an SE product from Eldar at M-R, checkout the SE MT15i (Hallon/Vivaz2) preview: http://www.mobile-review.com/review/sonyericsson-vivaz2-en.shtml things are realy looking to be getting better at SE.
[ This Message was edited by: Tsepz_GP on 2011-01-20 11:25 ]
I was really surprised to see a positive review from M-R, then again I saw the editor of the review wasn't Eldar 
[ This Message was edited by: gayannr on 2011-01-20 12:01 ] | |
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Access the forum with a mobile phone via esato.mobi
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Posted: 2011-01-20 11:08
jay0726 | 
