Sony Ericsson reports first quarter results
MainPublished April 17, 2009 at 7:30 am by Max
Today Sony Ericsson reporst about results of the first quarter ended March 31, 2009. Q1 2008 Q4 2008 Q1 2009 22.3 24.2 14.5 2,702 2,914 1,736 29% 15% 8% 184 -262 -369 7% -9% -21% - 129 12 - -133 -357 -
-5%
-21% 193 -261 -370 - -133 -358 133 -187 -293 121 121 120
Number of units shipped (million)
Sales (Euro m.)
Gross margin (%)
Operating income (Euro m.)
Operating margin (%)
Restructuring charges (Euro m.)
Operating income excl. restructuring
charges (Euro m.)
Operating margin excl. restructuring charges (%)
Income before taxes (IBT) (Euro m.)
IBT excl. restructuring charges (Euro m.)
Net income (Euro m.)
Average selling price (Euro)
Units shipped in the quarter were 14.5 million, a decrease of 35% compared to the same period of last year and in line with our March 20, 2009 interim announcement of approximately 14 million units. Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.
Gross margin declined both year-on-year and sequentially, reflecting a change in the product mix, end of life write-offs for certain models as well as exchange rate volatility.
Income before taxes for the quarter excluding restructuring charges was a loss of Euro 358 million, within the range announced on March 20, 2009 (loss of Euro 340 – 390 million).
“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” said Dick Komiyama, President, Sony Ericsson. “The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”
The company’s initial cost saving program targeting annual operating expense reductions of Euro 300 million by the end of the first half of 2009, including a workforce reduction of 2,000 headcount, has now been completed. A total of Euro 187 million restructuring charges have been recorded compared to the initial estimated costs of Euro 300 million.
In January 2009 an additional cost saving program was initiated to target annual operating expense reductions of Euro 180 million by the end of 2009. The cost of this program will be covered by the initial Euro 300 million restructuring costs announced in July 2008.
The additional cost saving program announced today will include a further reduction in the global workforce of approximately 2,000 people. It is estimated that new restructuring charges of Euro 200 million will be needed to complete this program.
As of March 31, 2009, Sony Ericsson retained a strong net cash position of Euro 1.1 billion.
Market share in the first quarter decreased and is now estimated to be around 6%, down two percentage points sequentially.
Sony Ericsson forecasts that the global handset market for 2009 will contract at least 10% from around 1,190 million units in 2008.
At Mobile World Congress in February 2009, Sony Ericsson announced a new consumer proposition, called ‘Entertainment Unlimited’ (EU), to build on Sony Ericsson’s leadership in music, imaging, gaming, content services, and applications to deliver unlimited opportunities for consumers. The company also announced the first Entertainment Unlimited phone with the concept name ‘Idou’ to be launched in the second half of 2009. The next EU announcement will take place on 28 May.
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the main reason why people are not buying Sony Ericsson phone is because the quality of their phones have dropped – model after model
for example – the lastest phone Sony Ericsson C905 – no sound in the earpiece or broken earpiece is the main problem
i had a Sony Ericsson K750i – excellent
then i had Sony Ericsson W810i – excellent too
then i had Sony Ericsson K850i – Good – one problem – auto lens not working any more
then i got the Sony Ericsson C905 for one month – no sound in the earpiece – got a new C905 … earpiece again – got new one for third time … earpiece again
but then i changed my mind, i waited and waited for about 3 months and then i got my self the excellent “LG KM900 (AREAN)” – BEST PHONE EVER
i hope and pray that the Idou will have an excellent built quality because i can’t wait for the 12MP shooter. – but if not then i sticking with LG
like LG says “Life’s Good” – and i agree with them
And the C702 have a very poor quality……poor sound,poor pictures,shutting down for no reason, and the very bad is the paint. Its just wear off about two months of normal use! I think they must replace all c702 units.
two points:
1. Q1 2009 and probably Q2 2009 are the worst economical period of the last 50 years; has somebody noticed that? SE is going down but also the others aren’t doing that great. There are cost savings pretty everywhere.
2. Now everybody says that in the past everything was good but personally I had much more problems with K750 than with C702… Yes, it peels off and i hate it, but also K750 had its problems: the camera shutter was everything but accurate, it got a lot of dust under the screen, the first firmwares had terible problems with usb connection, etc… and i don’t talk about the joystick…
i say, you should be more realist about this situation… but maybe i’m wrong…
It seems that SE must improve its quarlities and initialities.SE has three biggest problem:applications too closely,design too sameness and updated speed too slowly.At first,SE was spoken highly of the people all over the world,but now they are quite disappointded.
By the way,Max,I really want to confirm something about SE’s future.
Months ago,some foreign news(or the rumours) reported that Ericsson would evacuate from SE and Sony tried to purchase it in about half an year or even further in the finacial storm.They explained the mainly reason is SE’s bad achievement,also Ericsson expressed the same opinions. :-S :-S
However,I just hope it won’t be come true. ;-(
And Max,this is what you need to confirm.
quiciera saber algo sobre el soni ericsson W780 gracias