Form 6-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of October 2007
Commission File Number: 001-06439
SONY CORPORATION
(Translation of registrant's name into English)
1-7-1 KONAN, MINATO-KU, TOKYO, 108-0075, JAPAN
(Address of principal executive offices)
The registrant files annual reports under cover of Form 20-F.
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F,
Form 20-F X Form 40-F __
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934,
Yes No X
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):82-______
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
SONY CORPORATION
(Registrant)
By: /s/ Nobuyuki Oneda
(Signature)
Nobuyuki Oneda
Executive Vice President and
Chief Financial Officer
Date: October 11, 2007
List of materials
Documents attached hereto:
i) Press release announcing Sony Ericsson Q3 Results
Sony Ericsson
PRESS RELEASE October 11, 2007
Continuing strong momentum at Sony Ericsson
Q3 Highlights:
- Year-on-year volume growth of 31%
- Continued volume growth driven by profitable lower priced phones
- Good market reaction to new slider form-factor of W580 Walkman(R) phone
- Successful launch of Sony Ericsson P1 smartphone
The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the third quarter ended September 30, 2007 is as follows:
Q3 2006 Q2 2007 Q3 2007
________ _______ _______
Number of units shipped (million) 19.8 24.9 25.9
Sales (Euro m.) 2,913 3,112 3,108
Gross Margin (%) 31.5% 29.6% 30.7%
Operating Income (Euro m.) 427 315 393
Operatomg Income (%) 14.6% 10.1% 12.7%
Income before taxes (Euro m.) 433 327 384
Net income (Euro m.) 298 220 267
Average Sales Price (Euro) 147 125 120
Units shipped in the quarter reached approximately 26 million, a 31% increase
compared to the same period last year. Sales for the quarter were Euro 3,108
million, representing a year-on-year increase of 7%. Income before taxes for the
quarter was Euro 384 million, representing a year-on-year decrease of 11%, which
reflects the exceptional third quarter the company experienced in 2006. Net
income for the quarter was Euro 267 million. In line with Sony Ericsson
expectations, the increase in low- and mid-tier priced phones in the product
portfolio in the third quarter resulted in a decline in Average Selling Price
(ASP) to Euro 120.
"The quarter has seen Sony Ericsson continue to generate significant
year-on-year volume growth with a portfolio of products spread across the widest
variety of price points in the company's history. Low- and mid-tier priced
models such as the W200 Walkman(R) phone and simple 'talk and text' range of
phones have been key volume drivers during the quarter, while the high-spec P1
smartphone and W580 slider Walkman(R) phone have been well received and
strengthen the portfolio at the higher-end," said Miles Flint, President of Sony
Ericsson. "We are confident that the remainder of the year will see us further
capitalize on this new broader portfolio with flag-ship Walkman(R) phone models
such as the W910 and W960 plus the much anticipated 5 mega-pixel Cyber-shot(TM)
K850 camera phone launching in time for the holiday season."
During the quarter Sony Ericsson strengthened its position in North America and
Latin America as well as Western Europe due to well accepted Walkman(R) and
Cyber-shot(TM) phones. Previously announced activities to further strengthen the
overall portfolio such as manufacturing and R&D activities in India, plus an R&D
licensing agreement with Sagem continue to progress as planned.
Sony Ericsson forecasts that the 2007 global handset market will be above 1.1
billion units. The company gained around 1% of market share compared with the
same period last year and finished the third quarter at over 9%.
As communicated at the beginning of the year, a capital redemption of total Euro
300 million was paid to the parent companies in the quarter.
During the quarter Sony Ericsson announced that the company's president Miles
Flint will step down as of November 1st 2007. Effective 1st November Hideki
'Dick' Komiyama, currently Director, Chairman, Sony Electronics Inc., USA,
and EVP Electronics Marketing and Sales Strategies, Sony Corporation, Japan,
will succeed Miles Flint, who will remain as Executive Advisor to Dick Komiyama
until the end of December 2007. Dick Komiyama will be based at Sony Ericsson's
offices in London.
Invoices from Ericsson amounted to Euro 152 million in the quarter, which was
offset from the advance payment made by Sony Ericsson to Ericsson in the first
quarter of 2007.
WALKMAN(R) and Cyber-shot(TM) are trademarks or registered trademarks of Sony
Corporation.
EDITOR'S NOTES:
Financial Statements and Additional Information:
Financial Statements:
Consolidated Income Statement
Consolidated Income Statement - Year-to-Date
Consolidated Income Statement - Isolated Quarters
Consolidated Balance Sheet
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows - Year-to-Date
Consolidated Statement of Cash Flows - Isolated Quarters
Additional Information:
Net Sales by Market Area by Quarter
- ENDS -
Sony Ericsson Mobile Communications was established as a 50:50 joint venture by
Sony and Ericsson in October 2001, with global corporate functions located in
London. The company serves the worldwide communications market with innovative
and feature-rich mobile phones, accessories and PC-cards, and it has R&D sites
in Europe, Japan, China, India and America. Sony Ericsson is the title sponsor
of the Women's Tennis Association, and works with the Association to promote the
Sony Ericsson WTA Tour in over 80 cities during the year. For more information,
please visit www.sonyericsson.com
CONTACTS:
Investors/Analysts
Ericsson Investor Relations
Gary Pinkham (Stockholm) +46 8 719 0858
Sony Investor Relations
Shinji Tomita (London) +44 207 444 9713
Tatsuyuki Sonoda (Tokyo) +81 3 6748 2180
Press/Media
Sony Ericsson Corporate Communications & PR
Aldo Liguori (London) +44 208 762 5860
Merran Wrigley (London) +44 208 762 5862
This press release contains forward-looking statements that involve inherent
risks and uncertainties. We have identified certain important factors that may
cause actual results to differ materially from those contained in such
forward-looking statements. For a detailed description of risk factors see
Sony's and Ericsson's filings with the US Securities and Exchange Commission,
particularly each company's latest published Annual Report on Form 20-F.
Sony Ericsson
CONSOLIDATED INCOME STATEMENT
Jul-Sep
____________________________________
EUR million 2007 2006 Change
____________________________________________________________________________
Net sales 3,108 2,913 7%
Cost of sales -2,154 -1,995 8%
______________________
Gross profit 954 917 4%
Gross margin % 30.7% 31.5% -1%
Research and development expenses -280 -225 25%
Selling and administrative expenses -280 -287 -3%
______________________
Operating expenses -560 -511 9%
Other operating income, net -1 21 -105%
______________________
Operating income 393 427 -8%
Operating margin % 12.7% 14.6% -2%
Financial income 7 8 -16%
Financial expenses -16 -1 -
______________________
Income after financial items 384 433 -11%
Taxes -109 -127 -14%
Minority interest -8 -8 -2%
______________________
Net income 267 298 -10%
Number of units shipped (million) 25.9 19.8 31%
ASP (EUR) 120 147 -19%
Sony Ericsson
CONSOLIDATED INCOME STATEMENT
Jan-Sep
____________________________________
EUR million 2007 2006 Change
____________________________________________________________________________
Net sales 9,145 7,177 27%
Cost of sales -6,384 -5,089 25%
______________________
Gross profit 2,760 2,088 32%
Gross margin % 30.2% 29.1% 1%
Research and development expenses -824 -650 27%
Selling and administrative expenses -885 -719 23%
______________________
Operating expenses -1,709 -1,369 25%
Other operating income, net 2 55 -95%
______________________
Operating income 1,055 773 36%
Operating margin % 11.5% 10.8% 1%
Financial income 43 25 73%
Financial expenses -25 -2 -
______________________
Income after financial items 1,073 796 35%
Taxes -306 -224 36%
Minority interest -27 -22 24%
______________________
Net income 741 550 35%
Number of units shipped (million) 72.6 48.8 49%
ASP (EUR) 126 147 -14%
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2007 2006
____________________ ___________________________
EUR million Q3 Q2 Q1 Q4 Q3 Q2 Q1
_________________________________________________ ___________________________
Net sales 3,108 3,112 2,925 3,782 2,913 2,272 1,992
Cost of sales -2,154 -2,192 -2,039 -2,686 -1,995 -1,625 -1,469
____________________ ___________________________
Gross profit 954 921 886 1,096 917 647 524
Gross margin % 30.7% 29.6% 30.3% 29.0% 31.5% 28.5% 26.3%
Research and development
expense -280 -283 -261 -256 -225 -223 -202
Selling and administrative
expenses -280 -321 -284 -367 -287 -246 -186
____________________ ___________________________
Operating expenses -560 -604 -545 -623 -511 -470 -388
Other operating income, net -1 -2 5 10 21 26 7
____________________ ___________________________
Operating income 393 315 346 484 427 203 143
Operating margin % 12.7% 10.1% 11.8% 12.8% 14.6% 8.9% 7.2%
Financial income 7 18 18 19 8 8 9
Financial expenses -16 -6 -2 0 -1 0 0
____________________ ___________________________
Income after financial items 384 327 362 502 433 211 151
Taxes -109 -97 -100 -43 -127 -64 -34
Minority interest -8 -10 -9 -12 -8 -5 -9
____________________ ___________________________
Net income 267 220 254 447 298 143 109
Number of units shipped
(million) 25.9 24.9 21.8 26.0 19.8 15.7 13.3
ASP (EUR) 120 125 134 146 147 145 149
Sony Ericsson
CONSOLIDATED BALANCE SHEET
Sep 30 Jun 30 Dec 31 Sept 30
EUR million 2007 2007 2006 2006
_______________________________________________________________________________
ASSETS
Total fixed and financial assets 511 498 469 316
Current assets
Inventories 620 477 437 578
Accounts receivables 1,803 1,831 1,653 1,347
Other assets 544 845 310 249
Other short-term cash investments 954 1,071 1,580 1,098
Cash and bank 804 659 693 763
_____ _____ _____ _____
Total current assets 4,725 4,882 4,673 4,035
_______________________________________________________________________________
Total assets 5,236 5,380 5,141 4,351
_______________________________________________________________________________
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 1,663 1,702 1,781 1,353
Minority interest 70 63 45 37
_____ _____ _____ _____
Total equity 1,733 1,764 1,826 1,391
Total long-term liabilities 22 21 20 17
Accounts payable 1,602 1,371 1,276 1,118
Other current liabilities 1,879 2,224 2,019 1,825
_____ _____ _____ _____
Total current liabilities 3,481 3,595 3,296 2,944
_______________________________________________________________________________
Total shareholders' equity and liabilities 5,236 5,380 5,141 4,351
_______________________________________________________________________________
Net cash* 1,758 1,729 2,272 1,795
* Net cash is defined as cash and bank plus short-term cash investments less
interest bearing liabilities.
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
Jul-Sep
__________________
EUR million 2007 2006
OPERATIONS
Net income 267 298
Adjustments to reconcile net income to cash 32 20
__________________
299 318
Changes in operating net assets 88 -21
__________________
Cash flow from operating activities 387 297
INVESTMENTS
Investing activities -53 -36
__________________
Cash flow from investing activities -53 -36
FINANCING
Financing activities -300 -2
__________________
Cash flow from financing activities -300 -2
Net change in cash 34 259
Cash, beginning of period 1,730 1,595
Translation difference in Cash -6 7
__________________
Cash, end of period 1,758 1,861
_________________________________________________________________________
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
Jan-Sep
__________________
EUR million 2007 2006
_________________________________________________________________________
OPERATIONS
Net income 741 550
Adjustments to reconcile net income to cash 90 62
__________________
831 612
Changes in operating net assets -349 50
__________________
Cash flow from operating activities 482 662
INVESTMENTS
Investing activities -138 -108
__________________
Cash flow from investing activities -138 -108
FINANCING
Financing activities -849 -212
__________________
Cash flow from financing activities -849 -212
Net change in cash -504 342
Cash, beginning of period 2,273 1,537
Translation difference in Cash -11 -18
__________________
Cash, end of period 1,758 1,861
_________________________________________________________________________
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar
_______________________________________________________
EUR million 2007 2007 2007 2006 2006 2006 2006
_______________________________________________________________________________
OPERATIONS
Net income 267 220 254 447 298 143 109
Adjustments to reconcile
net income to cash 32 30 28 23 20 22 20
_______________________________________________________
299 250 282 470 318 165 129
Changes in operating net
assets 88 16 -454 50 -21 18 53
_______________________________________________________
Cash flow from operating
activities 387 266 -172 520 297 183 182
INVESTMENTS
Investing activities -53 -31 -53 -26 -36 -29 -43
_______________________________________________________
Cash flow from investing
activities -53 -31 -53 -26 -36 -29 -43
FINANCING
Financing activities -300 - 548 - 1 -66 - 2 26 - 236
_______________________________________________________
Cash flow from financing
activities -300 -548 -1 -66 -2 26 -236
Net change in cash 34 -312 -226 428 259 180 -97
Cash, beginning of period 1,730 2,045 2,273 1,861 1,595 1,428 1,537
Translation difference
in Cash -6 -3 -2 -16 7 -13 -12
_______________________________________________________
Cash, end of period 1,758 1,730 2,045 2,273 1,861 1,595 1,428
_______________________________________________________________________________
Sony Ericsson
NET SALES BY MARKET AREA BY QUARTER
EUR million
2007 2006
_____________________ __________________________
Isolated quarters Q3 Q2 Q1 Q4 Q3 Q2 Q1
____________________________________________ __________________________
Europe, Middle East
& Africa * 1,715 1,729 1,598 2,145 1,600 1,090 1,029
Americas 573 499 365 555 417 328 250
Asia 820 885 961 1,082 896 853 713
____________________________________________ __________________________
Total 3,108 3,112 2,925 3,782 2,913 2,272 1,992
____________________________________________ __________________________
* of which Western
Europe 1,103 1,102 1,078 1,478 1,115 748 674
2007 2006
_____________________ __________________________
Sequential change (%) Q3 Q2 Q1 Q4 Q3 Q2 Q1
____________________________________________ __________________________
Europe, Middle East
& Africa * -1% 8% -26% 34% 47% 6% -27%
Americas 15% 37% -34% 33% 27% 31% -19%
Asia -7% -8% -11% 21% 5% 20% 20%
____________________________________________ __________________________
Total 0% 6% -23% 30% 28% 14% -14%
____________________________________________ __________________________
* of which Western
Europe 0% 2% -27% 33% 49% 11% -35%
2007 2006
_____________________ __________________________
Year over year
change (%) Q3 Q2 Q1 Q4 Q3 Q2 Q1
____________________________________________ __________________________
Europe, Middle East
& Africa * 7% 59% 55% 52% 35% 43% 71%
Americas 37% 52% 46% 79% 77% 53% 53%
Asia -8% 4% 35% 83% 42% 33% 36%
____________________________________________ __________________________
Total 7% 37% 47% 64% 42% 41% 55%
____________________________________________ __________________________
* of which Western
Europe -1% 47% 60% 45% 33% 42% 84%
2007 2006
_____________________ __________________________
Year to date 0709 0706 0703 0612 0609 0606 0603
____________________________________________ __________________________
Europe, Middle East
& Africa * 5,042 3,328 1,598 5,865 3,720 2,120 1,029
Americas 1,436 864 365 1,550 995 578 250
Asia 2,666 1,846 961 3,544 2,462 1,566 713
____________________________________________ __________________________
Total 9,145 6,037 2,925 10,959 7,177 4,264 1,992
____________________________________________ __________________________
* of which Western
Europe 3,283 2,179 1,078 4,014 2,537 1,422 674
2007 2006
_____________________ __________________________
YTD year over year
change (%) 0709 0706 0703 0612 0609 0606 0603
____________________________________________ __________________________
Europe, Middle East
& Africa * 36% 57% 55% 48% 46% 56% 71%
Americas 44% 49% 46% 68% 62% 53% 53%
Asia 8% 18% 35% 48% 37% 35% 36%
____________________________________________ __________________________
Total 27% 42% 47% 51% 45% 47% 55%
____________________________________________ __________________________
* of which Western
Europe 29% 53% 60% 46% 46% 59% 84%