Sony Ericsson reports strong increase in sales and shipments for its
two core business areas GSM and Japanese standards
Tokyo and Stockholm, July 15 -- Sony and Ericsson today announced the
financial summary for the second quarter, ended June 30, 2003 of Sony
Ericsson Mobile Communications AB, the 50:50 joint venture of Sony
and Ericsson. The company reported improved operating results and a
strong increase in sales and shipments for its two core business
areas; GSM and Japanese standards.
Units shipped in the quarter reached 6.7 million, which is 34% higher
year-on-year and 23% higher compared to the first quarter 2003. Net
sales for the quarter were Euro 1.125 million, representing
year-on-year and sequential increases of 18% and 40%, respectively.
In the areas of strategic focus and in the wake of successful product
launches, the GSM business posted 84% year-on-year growth in
shipments and Japanese standards shipments increased 45%
year-on-year. This business growth is attributable to a strengthened
product offering coupled with strongly improved supply and logistics
performance.
Income before taxes excluding restructuring charges was Euro -45
million and Net Income (excluding restructuring charges) was Euro -33
million, which represents year-on-year improvements of Euro 53
million and Euro 50 million, respectively. Income before taxes
including restructuring was Euro -102 million and net income was Euro
-88 million.
+-------------------------------------------------------------------+
| | Q2 2002 | Q1 2003 | Q2 2003 |
|-------------------------------------+---------+---------+---------|
| Numbers of units shipped (million) | 5.0 | 5.4 | 6.7 |
|-------------------------------------+---------+---------+---------|
| Sales (EURO m.) | 950 | 806 | 1.125 |
|-------------------------------------+---------+---------+---------|
| Income before taxes excl. | -98 | -113 | -45 |
| restructuring costs (EURO m.) | | | |
|-------------------------------------+---------+---------+---------|
| Income before taxes incl. | -98 | -113 | -102 |
| restructuring costs (EURO m.) | | | |
|-------------------------------------+---------+---------+---------|
| Net income incl restructuring costs | -83 | -104 | -88 |
| (EURO m.) | | | |
+-------------------------------------------------------------------+
Sony Ericsson has earlier announced (June 24, 2003) the decision to
increase its focus on GSM/EDGE/UMTS and Japanese standards. Further
to the phase-out of Sony Ericsson's American CDMA business and GSM
R&D activities in Munich, total restructuring costs are estimated to
approximately Euro 70 million of which Euro 58 million has been
recognized in the second quarter. The restructuring activities are
well underway and are projected to generate yearly run-rate savings
of approximately Euro 120 million when completed, with some benefit
in the second half of 2003.
Sony Ericsson is expected to be profitable in the second half of 2003
as a result of the increasing momentum in the company's new GSM and
Japanese product portfolio. However, Sony Ericsson will not be
profitable for the full year 2003 due to restructuring costs and
losses incurred in the first half of the year.
Quelle: http://www.ericsson.com
gruss,
altobelli