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16th July 2004 - Sony and Ericsson today announced
the consolidated financial summary for the second quarter
ended June 30, 2004 of Sony Ericsson Mobile Communications
AB (Sony Ericsson), the 50:50 joint venture of Sony
and Ericsson. Units shipped in the quarter reached 10.4
million, a 55% increase compared to the same period
last year. Sales for the quarter were Euro 1,504 million,
representing a year-on-year increase of 34%. Income
before taxes were Euro 113 million and net income was
Euro 89 million, which represent year-on-year improvements
of Euro 215 million and Euro 177 million respectively.
Sony Ericsson's Average Selling Price (ASP) decreased
sequentially in line with expectation due to an increase
in GSM phones in the overall product mix. The company
maintained momentum from the previous quarter, and continued
to grow while sustaining a consistent level of profitability.
Sony Ericsson is revising its global market outlook
for 2004 to approximately 600 million units from its
previously stated level of over 550 million.
"Sony Ericsson is pleased to report a fourth consecutive
quarter of profit. These results reflect continued strong
demand for our style-oriented line-up of imaging and
multi-media phones. The company has established a solid
basis for sustained growth going forward. In addition
to reporting successively improving profitability, we
have maintained momentum in an increasingly competitive
market environment. We are confident that as we continue
to enhance our portfolio with exciting and innovative
products, the Sony Ericsson brand will become ever stronger",
said Miles Flint, President of Sony Ericsson.
During the end of the second quarter a number of new
products started shipping to network operators and retailers
including Sony Ericsson's first UMTS 3G phone, the Z1010,
which has now been launched by over a dozen network
operators. The K700, a high-end multi-media phone for
GSM markets, and the 'premini', a very small and stylish
PDC phone for NTT DoCoMo in Japan, have also started
shipping during the quarter.
Q2 2003 Q1 2004 Q2 2004
Numbers of units shipped (million) 6.7 8.8 10.4
Sales (EURO m.) 1125 1338 1504
Income before taxes (EURO m.) -102 97 113
Net income (EURO m.) -88 82 89
* Q2 2003 IBT includes restructuring charges of Euro
58m ** Q2 2004 IBT includes consolidation of BMC and
Net Income includes deduction of minority interest in
BMC
Note: On June 30, Sony Ericsson announced it had increased
its equity stake in a Chinese factory, Beijing Ericsson
Putian Mobile Communications Co. Ltd. (BMC), to 51%,
taking over majority ownership of the facility from
Ericsson. BMC operations have been fully consolidated
into Sony Ericsson in the second quarter which had a
positive effect on the company's results. The name of
the factory has been changed to Beijing SE Putian Mobile
Communications Co. Ltd. (BMC).
Sony Ericsson Mobile Communications AB serves the global
communications market with innovative and feature-rich
mobile phones, accessories, PC-cards and M2M solutions.
Established as a joint venture by Ericsson and Sony
in 2001, with headquarters in London, the company employs
approximately 5,000 people worldwide, including R&D
sites in Europe, Japan, China and America. For more
information, please visit www.SonyEricsson.com
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