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The following information is true and accurate at the time of publication.
JULY 15, 2003
Sony Ericsson reports strong increase in sales and shipments for its two core business areas GSM and Japanese standards
Sony Corporation
Telefonaktiebolaget LM Ericsson
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.
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Q2 2002
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Q1 2003
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Q2 2003
|
| Numbers
of units shipped (million) |
5.0
|
5.4
|
6.7
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| Sales
(EURO m.) |
950
|
806
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1.125
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| Income
before taxes excl. restructuring costs (EURO m.) |
-98
|
-113
|
-45
|
| Income
before taxes incl. restructuring costs (EURO m.) |
-98
|
-113
|
-102
|
| Net
income incl restructuring costs (EURO m.) |
-83
|
-104
|
-88
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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.
Sony Ericsson Mobile Communications AB offers mobile
communications products for people who appreciate the possibilities
of powerful technology. Established in 2001 by Telefonaktiebolaget
LM Ericsson and Sony Corporation, the joint venture continues
to build on the success of its two innovative parent companies.
Sony Ericsson creates value for its operator customers by
bringing new ways of using multimedia communications while
mobile. The company's management is based in London, and
has 4,000 employees across the globe working on research,
development, design, sales, marketing, distribution and
support.
For further information, please visit: www.SonyEricsson.com
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