a6008241.htm
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 July 2009
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 Deputy President and
 
Chief Financial Officer
 
Date: July 16, 2009

List of materials

Documents attached hereto:
 
i) Press release entitled "Sony Ericsson reports second quarter results"

 
 
PRESS RELEASE   
July 16, 2009
 
 
Sony Ericsson reports second quarter results

Q2 highlights:
·  
Continued challenging market conditions
·  
Transformation program on track
·  
New Communication Entertainment portfolio announced - shipping Q4 2009

The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the second quarter ended June 30, 2009 is as follows:

      Q2 2008       Q1 2009       Q2 2009  
Number of units shipped (million)
    24.4       14.5       13.8  
Sales (Euro m.)
    2,820       1,736       1,684  
Gross margin (%)
    23 %     8 %     12 %
Operating income (Euro m.)
    -2       -369       -274  
Operating margin (%)
    -0 %     -21 %     -16 %
   Restructuring charges (Euro m.)
    11       12       1  
   Operating income excl. restructuring charges (Euro m.)
    8       -357       -274  
   Operating margin excl. restructuring charges (%)
    0 %     -21 %     -16 %
Income before taxes (IBT) (Euro m.)
    8       -370       -283  
   IBT excl. restructuring charges (Euro m.)
    19       -358       -283  
Net income (Euro m.)
    6       -293       -213  
                         
Average selling price (Euro)
    116       120       122  

Units shipped in the quarter were 13.8 million, a decrease of 43% year-on-year and a sequential decrease of 5%. Sales for the quarter were Euro 1,684 million, a year-on-year decrease of 40%. This was due to continued challenging market conditions in all regions, particularly in Latin American markets.

Gross margin improved sequentially, despite lower volumes and sales, driven by a more favourable product mix and less material write-off costs than the previous quarter.

Income before taxes for the quarter, excluding restructuring charges, was a loss of Euro 283 million compared to a loss of Euro 370 million from the previous quarter. This was due to the better gross margin, as well as reduced operating expenses that are a result of the ongoing cost savings program.

 “As expected, the second quarter was challenging and we still believe the remainder of the year will be difficult for Sony Ericsson. Our focus remains on bringing the company back to profitability and growth as quickly as possible, and our performance is starting to improve due to our cost reduction activities. The new product portfolio that integrates communications, entertainment and social media applications should contribute to healthier topline development when shipments start later this year,” said Dick Komiyama, President, Sony Ericsson. “We remain confident that the actions we are taking will further improve our financial situation and strengthen Sony Ericsson’s competitiveness.”
 
As of June 30, 2009, Sony Ericsson retained a good net cash position of Euro 965 million.
 

 
Programs started mid 2008 to reduce operating expenses by Euro 880 million are on track, with the full benefit expected during the second half of 2010. The total restructuring charges for these programs are estimated to be well within the previously announced Euro 500 million. Since the beginning of the cost reduction programs, the total global workforce has been reduced by 2,350 people.
 
During the quarter Sony Ericsson expanded on its strategy of transforming into the Communication Entertainment brand with the announcement of three new mobile phones; Aino, Satio and Yari. These phones integrate communications features with entertainment content and social media applications. In addition, Sony Ericsson announced the expansion of its content delivery platform, PlayNow™ arena, to include an application store and downloadable movies via PC.
 
Sony Ericsson maintains its forecast that the global handset market for 2009 will continue to contract by at least 10% from around 1,190 million units in 2008. Sony Ericsson estimates that its market share was over 5% in the second quarter.
 

The liquid identity and PlayNow are trademarks or registered trademarks of Sony Ericsson Mobile Communications.
Sony is a trademark or registered trademark of Sony Corporation. Ericsson is the trademark or registered trademark of Telefonaktiebolaget LM Ericsson.
Other product and company names mentioned herein may be the trademarks of their respective owners. Any rights not expressly granted herein are reserved. Subject to change without prior notice.

- ENDS -
 

 
EDITOR’S NOTES:

Financial statements and additional information:

Financial statements:

Consolidated income statement
Consolidated income statement – isolated quarters
Consolidated balance sheet
Consolidated statement of cash flows
Consolidated statement of cash flows – isolated quarters

Additional information:

Net sales by market area by quarter

- ENDS -

Sony Ericsson is a top, global industry player with sales of around 97 million phones in 2008.  Diversity is one of the core strengths of the company, with operations in over 80 countries including manufacturing in China and R&D sites in China, Europe, India, Japan and North America.  Sony Ericsson was established as a 50:50 joint venture by Sony and Ericsson in October 2001, with global corporate functions located in London.  For more information about Sony Ericsson please visit www.sonyericsson.com
 
 
CONTACTS:

Investors / Analysts
Ericsson investor relations                                                                                     
Gary Pinkham (Stockholm) +46 10 719 0858
Susanne Andersson (Stockholm) +46 10 719 4631
Andreas Hedemyr (Stockholm) +46 10 404 3748                                                                                                

Sony investor relations                                                                                                           
Shinji Tomita (London) +44 20 7426 8696
Gen Tsuchikawa (Tokyo) +81 3 6748 2180 

Press / Media
Sony Ericsson global communications and PR
Aldo Liguori (London) +44 20 8762 5860
Merran Wrigley (London) +44 20 8762 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

   
Apr-Jun
 
EUR million
 
2009
   
2008
   
Change
 
                   
Net sales
    1,684       2,820       -40 %
Cost of sales
    -1,483       -2,168       -32 %
Gross profit
    200       653       -69 %
Gross margin %
    11.9 %     23.1 %     -11 %
                         
Research and development expenses
    -245       -344       -29 %
Selling and administrative expenses
    -235       -310       -24 %
Operating expenses
    -480       -653       -26 %
                         
Other operating income, net
    6       -2       491 %
Operating income
    -274       -2       -  
Operating margin %
    -16.3 %     -0.1 %     -16 %
                         
Financial income
    6       25       -76 %
Financial expenses
    -15       -14       4 %
Income after financial items
    -283       8       -  
                         
Taxes
    74       0       -  
Minority interest
    -4       -3       49 %
Net income
    -213       6       -  
                         
                         
Number of units shipped (million)
    13.8       24.4       -43 %
ASP (EUR)
    122       116       5 %
                         
                         
                         
                         
EUR Million
 
Apr-Jun
   
Apr-Jun
         
Restructuring charges
 
2009
   
2008
         
  Cost of sales
    -9       8          
  Research and development expenses
    9       2          
  Sales and administrative expenses
    1       1          
  Other operating income, net
    0       0          
Total
    1       11          
 

 
Sony Ericsson
CONSOLIDATED INCOME STATEMENT

   
Jan-Jun
 
EUR million
 
2009
   
2008
   
Change
 
                   
Net sales
    3,419       5,522       -38 %
Cost of sales
    -3,074       -4,082       -25 %
Gross profit
    346       1,440       -76 %
Gross margin %
    10.1 %     26.1 %     -16 %
                         
Research and development expenses
    -548       -683       -20 %
Selling and administrative expenses
    -460       -580       -21 %
Operating expenses
    -1,008       -1,263       -20 %
                         
Other operating income, net
    19       5       310 %
Operating income
    -644       182       -454 %
Operating margin %
    -18.8 %     3.3 %     -22 %
                         
Financial income
    15       49       -69 %
Financial expenses
    -25       -29       -16 %
Income after financial items
    -653       201       -424 %
                         
Taxes
    158       -57       -379 %
Minority interest
    -10       -6       71 %
Net income
    -505       139       -464 %
                         
                         
Number of units shipped (million)
    28.3       46.7       -39 %
ASP (EUR)
    121       118       2 %
                         
                         
                         
                         
EUR Million
 
Jan-Jun
   
Jan-Jun
         
Restructuring charges
 
2009
   
2008
         
  Cost of sales
    -2       8          
  Research and development expenses
    11       2          
  Sales and administrative expenses
    4       1          
  Other operating income, net
    0       0          
Total
    13       11          
 

 
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS

   
2009
   
2008
 
EUR million
    Q2       Q1       Q4       Q3       Q2       Q1  
                                                 
Net sales
    1,684       1,736       2,914       2,808       2,820       2,702  
Cost of sales
    -1,483       -1,591       -2,476       -2,192       -2,168       -1,914  
Gross profit
    200       145       438       616       653       788  
Gross margin %
    11.9 %     8.4 %     15.0 %     21.9 %     23.1 %     29.2 %
                                                 
Research and development expenses
    -245       -303       -359       -337       -344       -339  
Selling and administrative expenses
    -235       -225       -366       -303       -310       -270  
Operating expenses
    -480       -528       -725       -640       -653       -610  
                                                 
Other operating income, net
    6       13       24       -8       -2       6  
Operating income
    -274       -369       -262       -33       -2       184  
Operating margin %
    -16.3 %     -21.3 %     -9.0 %     -1.2 %     -0.1 %     6.8 %
                                                 
Financial income
    6       9       28       25       25       24  
Financial expenses
    -15       -10       -27       -15       -14       -15  
Income after financial items
    -283       -370       -261       -23       8       193  
                                                 
Taxes
    74       84       81       6       0       -57  
Minority interest
    -4       -6       -7       -8       -3       -3  
Net income
    -213       -293       -187       -25       6       133  
                                                 
                                                 
Number of units shipped (million)
    13.8       14.5       24.2       25.7       24.4       22.3  
ASP (EUR)
    122       120       121       109       116       121  
                                                 
                                                 
                                                 
                                                 
EUR Million
           
2009
                     
2008
         
Restructuring charges
    Q2       Q1       Q4       Q3       Q2          
  Cost of sales
    -9       7       67       0       8          
  Research and development expenses
    9       2       35       26       2          
  Sales and administrative expenses
    1       3       24       3       1          
  Other operating income, net
    0       0       3       6       0          
Total
    1       12       129       35       11          
 

 
Sony Ericsson
CONSOLIDATED BALANCE SHEET

   
Jun 30
   
Mar 31
   
Dec 31
   
Jun 30
 
EUR million
 
2009
   
2009
   
2008
   
2008
 
                         
ASSETS
                       
                         
Total fixed and financial assets
    736       658       590       590  
                                 
Current assets
                               
Inventories
    404       477       531       538  
Accounts receivables
    936       1,193       1,629       1,905  
Other assets
    379       463       585       511  
Other short-term cash investments
    456       574       707       966  
Cash and bank
    509       542       418       624  
Total current assets
    2,685       3,249       3,870       4,544  
                                 
                                 
Total assets
    3,421       3,908       4,460       5,134  
                                 
SHAREHOLDERS' EQUITY AND LIABILITIES
                               
                                 
Shareholders' equity
    694       930       1,217       1,684  
Minority interest
    66       65       57       35  
Total equity
    760       995       1,274       1,719  
                                 
Total long-term liabilities
    30       30       30       25  
                                 
Accounts payable
    848       965       990       1,436  
Other current liabilities
    1,782       1,918       2,166       1,954  
Total current liabilities
    2,630       2,882       3,156       3,390  
                                 
Total shareholders' equity and liabilities
    3,421       3,908       4,460       5,134  
                                 
Net cash*
    965       1,116       1,072       1,591  
                                 
* Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities.                                 
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Apr-Jun
 
EUR million
 
2009
   
2008
 
             
OPERATIONS
           
Net income
    -213       6  
Adjustments to reconcile net income to cash
    37       40  
      -176       46  
                 
Changes in operating net assets
    60       -142  
Cash flow from operating activities
    -115       -96  
                 
INVESTMENTS
               
Investing activities
    -13       -29  
Cash flow from investing activities
    -13       -29  
                 
FINANCING
               
Financing activities
    0       - 8  
Cash flow from financing activities
    0       -8  
                 
Net change in cash
    -128       -133  
Cash, beginning of period
    1,116       1,711  
Translation difference in Cash
    -23       13  
Cash, end of period
    965       1,591  
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Jan-Jun
 
EUR million
 
2009
   
2008
 
             
OPERATIONS
           
Net income
    -505       139  
Adjustments to reconcile net income to cash
    66       69  
      -439       208  
                 
Changes in operating net assets
    382       -242  
Cash flow from operating activities
    -57       -34  
                 
INVESTMENTS
               
Investing activities
    -32       -50  
Cash flow from investing activities
    -32       -50  
                 
FINANCING
               
Financing activities
    - 53       -470  
Cash flow from financing activities
    -53       -470  
                 
Net change in cash
    -142       -554  
Cash, beginning of period
    1,125       2,155  
Translation difference in Cash
    -18       -11  
Cash, end of period
    965       1,591  
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS

   
2009
   
2008
 
EUR million
 
Apr-Jun
   
Jan-Mar
   
Oct-Dec
   
Jul-Sep
   
Apr-Jun
   
Jan-Mar
 
                                     
OPERATIONS
                                   
Net income
    -213       -293       -187       -25       6       133  
Adjustments to reconcile net income to cash
    37       29       37       39       40       31  
      -176       -263       -150       15       46       164  
                                                 
Changes in operating net assets
    60       321       -168       88       -142       -101  
Cash flow from operating activities
    -115       58       -318       102       -96       64  
                                                 
INVESTMENTS
                                               
Investing activities
    -13       -19       41       -55       -29       -22  
Cash flow from investing activities
    -13       -19       41       -55       -29       -22  
                                                 
FINANCING
                                               
Financing activities
    0       - 53       - 46       - 238       - 8       - 462  
Cash flow from financing activities
    0       -53       -46       -238       -8       -462  
                                                 
Net change in cash
    -128       -14       -323       -191       -133       -421  
Cash, beginning of period
    1,116       1,125       1,473       1,591       1,711       2,155  
Translation difference in Cash
    -23       5       -25       74       13       -24  
Cash, end of period
    965       1,116       1,125       1,473       1,591       1,711  
 

 
Sony Ericsson
NET SALES BY MARKET AREA BY QUARTER

EUR million
                                   
   
2009
   
2008
 
Isolated quarters
    Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    927       977       1,642       1,427       1,386       1,494  
Americas
    195       200       636       703       740       486  
Asia
    562       559       636       678       694       722  
Total
    1,684       1,736       2,914       2,808       2,820       2,702  
* of which Western Europe
    678       721       1,117       947       900       979  
                                                 
                                                 
             
2009
                             
2008
 
Sequential change (%)
    Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    -5 %     -40 %     15 %     3 %     -7 %     -34 %
Americas
    -3 %     -69 %     -10 %     -5 %     52 %     -24 %
Asia
    1 %     -12 %     -6 %     -2 %     -4 %     -18 %
Total
    -3 %     -40 %     4 %     0 %     4 %     -28 %
* of which Western Europe
    -6 %     -35 %     18 %     5 %     -8 %     -38 %
                                                 
                                                 
             
2009
                             
2008
 
Year over year change (%)
    Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    -33 %     -35 %     -27 %     -17 %     -20 %     -7 %
Americas
    -74 %     -59 %     0 %     23 %     48 %     33 %
Asia
    -19 %     -23 %     -28 %     -17 %     -21 %     -25 %
Total
    -40 %     -36 %     -23 %     -10 %     -9 %     -8 %
* of which Western Europe
    -25 %     -26 %     -29 %     -14 %     -18 %     -9 %
                                                 
                                                 
              2009                                2008  
Year to date
    0906       0903       0812       0809       0806       0803  
Europe, Middle East & Africa *
    1,903       977       5,947       4,306       2,879       1,494  
Americas
    395       200       2,566       1,930       1,226       486  
Asia
    1,121       559       2,731       2,094       1,416       722  
Total
    3,419       1,736       11,244       8,330       5,522       2,702  
* of which Western Europe
    1,400       721       3,943       2,826       1,879       979  
                                                 
                                                 
               2009                                2008  
YTD year over year change (%)
    0906       0903       0812       0809       0806       0803  
Europe, Middle East & Africa *
    -34 %     -35 %     -18 %     -15 %     -13 %     -7 %
Americas
    -68 %     -59 %     24 %     34 %     42 %     33 %
Asia
    -21 %     -23 %     -23 %     -21 %     -23 %     -25 %
Total
    -38 %     -36 %     -13 %     -9 %     -9 %     -8 %
* of which Western Europe
    -26 %     -26 %     -19 %     -14 %     -14 %     -9 %