Sony Ericsson reports fourth quarter and full year 2011 results
(firmenpresse) - STOCKHOLM, SWEDEN -- (Marketwire) -- 01/19/12 --
* Q4 loss reflects intense competition, price erosion and restructuring
Charges
* 65% year-on-year increase in Android-based Xperia™ smartphone
quarterly sales
* 28 million Xperia smartphones shipped to date
The consolidated financial summary for Sony Ericsson Mobile Communications
AB
(Sony Ericsson) for the fourth quarter and full year ended December 31,
2011 is
as follows*:
Bert Nordberg, President and CEO of Sony Ericsson commented: "Our fourth
quarter
results reflected intense competition, unfavorable macroeconomic
conditions and
the effects of a natural disaster in Thailand this quarter. We are
aligning our
business to drive profitability and to meet customer needs. In spite of
these
challenges, throughout 2011 we've shifted our business from feature
phones to
smartphones, and our Android-based smartphone sales in the quarter
increased by
65% year-on-year. The Xperia portfolio, including the recently announced
Xperia
NXT series, will serve as a cornerstone of our smartphone lineup in 2012."
Units shipped during the quarter were 9 million, a 20% decrease
year-on-year and
a 5% decrease compared to last quarter. The year-on-year and sequential
declines
reflect a significantly lower number of feature phones shipped, partially
offset
by an increase in smartphone shipments. Sony Ericsson has shipped 28
million
Xperia smartphones to date.
Average selling price (ASP) for the quarter was Euro 143, up 5%
year-on-year but
down 14% sequentially. The year-on-year increase is due to the
shift to
smartphones and geographic mix. The sequential decrease in ASP is
attributed to
geographic and product mix, including declining prices of products
launched
earlier in the year, and the absence of new products introduced in the
fourth
quarter.
Sales for the quarter were approximately Euro 1.3 billion, down 16%
year-on-year
and 19% quarter over quarter. The year-on-year decline reflects the
decrease of
feature phone sales which was only partially offset by an increase in
smartphone
sales. The sequential decline is due to geographic and product mix,
resulting
in lower sales of both smartphones and feature phones. Fourth quarter sales
were
negatively impacted by macroeconomic challenges in advanced
economies
contributing to weaker holiday sales, and certain component shortages
from the
flooding in Thailand in late October and early November 2011. Xperia
smartphones
accounted for approximately 80% of total sales in the fourth quarter.
The gross margin for the quarter was 24%, a decrease of 6 percentage
points
year-on-year and 3 percentage points from the previous quarter.
The year-on-year
and sequential decreases are attributed to product and geographic mix.
Fourth
quarter gross margin was also adversely affected by intense smartphone
price
competition which more than offset the benefit of royalty and other items.
Loss before taxes, excluding restructuring charges, was Euro 154 million
for the
quarter, compared to income of Euro 39 million for the same quarter last
year
and of Euro 31 million in the previous quarter. The year-on-year and
sequential
declines are due to lower gross margin and increased operational expenses,
including higher development and selling expenses.
In December 2011, Sony Ericsson launched a restructuring program including
global workforce reductions to reduce costs and drive competitiveness.
Restructuring charges for the quarter are Euro 93 million and the program
is
estimated to be completed by the end of 2012.
The quarter ended in a net loss of Euro 207 million, compared to a net
income of
Euro 8 million in the same quarter of the previous year, and essentially a
break
even result in the previous quarter.
Cash flow from operating activities during the quarter was negative
Euro 26
million. External borrowings were Euro 19 million during the quarter.
Total
borrowings were Euro 742 million at the end of the quarter. Total cash
balances
at December 31, 2011 were Euro 442 million.
Sony Ericsson estimates that its share of the global Android-based
smartphone
market was 10% in volume and 7% in value during the quarter and 10% in
volume
and 10% in value for the full year.
Sony Ericsson estimates that the global smartphone market for the full
year
2011 increased by 60% in volume to 463 million units. Sony Ericsson
estimates
strong growth in the smartphone market in 2012.
In October 2011 Sony Corporation ("Sony") and Telefonaktiebolaget LM
Ericsson
("Ericsson") announced that Sony will acquire Ericsson's stake in Sony
Ericsson
and that Sony Ericsson will become a wholly-owned subsidiary of Sony.
The
transaction is expected to close in late January to February,
subject to
customary closing conditions, including regulatory approvals.
The liquid identity is a registered trademark of Sony Ericsson
Mobile
Communications AB. Xperia™ is a trademark of Sony Ericsson
Mobile
Communications AB. Sony is a registered trademark of Sony Corporation.
Ericsson
is a registered trademark of Telefonaktiebolaget LM Ericsson. Any
rights not
expressly granted herein are reserved and subject to change without
prior
notice.
About Sony Ericsson
Sony Ericsson is a 50:50 joint venture between Sony Corporation ("Sony")
and
Telefonaktiebolaget LM Ericsson ("Ericsson"). In October 2011 it was
announced
by Sony and Ericsson that Sony will acquire Ericsson's stake in the company
and
that Sony Ericsson will become a wholly-owned subsidiary of Sony. The
transaction is expected to close in late January to February, subject to
customary closing conditions, including regulatory approvals. Over the
years
Sony Ericsson has brought together the best communication technologies with
superior entertainment user experiences to create its Xperia™ line of
the
'most entertaining smartphones' in the mobile handset industry. With its
global
corporate functions in London, Sony Ericsson has sales and marketing
operations
in all major regions of the world, as well as manufacturing in China, and
product development sites in China, Japan, Sweden and Silicon Valley,
California. For more information, please visit:.
This press release contains forward-looking statements that involve
inherent
risks and uncertainties. Sony Ericsson has 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.
The full report (including tables) can be downloaded from the following
link:
Fourth quarter and full year report 2011:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Ericsson via Thomson Reuters ONE
[HUG#1578626]
CONTACTS:
Ericsson investor relations
Stefan Jelvin
(Stockholm)
+46 10 714 2039
Sony investor relations
Yoshinori Hashitani
(Tokyo)
+81 3 6748 2111
Yas Hasegawa
(London)
+44 20 7426 8696
Press / Media
Sony Ericsson global communications and PR
Cathy Davies
(London)
+44 208 762 5879
Holly Rossetti
(London)
+ 44 208 762 5851
Gustaf Brusewitz
(London)
+44 208 762 5805
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Datum: 19.01.2012 - 03:52 Uhr
Sprache: Deutsch
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