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 July 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: July 12, 2007
List of materials
Documents attached hereto:
i) Press release announcing Sony Ericsson Q2 Results
Sony Ericsson
PRESS RELEASE July 11, 2007
Sony Ericsson continues profitable growth and market share gains
Q2 Highlights:
- Continued strong year-on-year volume growth of 59%
- Income before tax grew 55% year-on-year to EUR327 million
- Walkman(R) phone sales of 9 million in quarter sustain leadership in
music phones
- Expanded portfolio continues to generate market share gains
The consolidated financial summary for Sony Ericsson Mobile Communications AB
(Sony Ericsson) for the second quarter ended June 30, 2007 is as follows:
Q2 2006 Q1 2007 Q2 2007
_______ _______ _______
Number of units shipped (million) 15.7 21.8 24.9
Sales (Euro m.) 2,272 2,925 3,112
Gross Margin (%) 28.5% 30.3% 29.6%
Operating Income (Euro m.) 203 346 315
Operating Income (%) 8.9% 11.8% 10.1%
Income before taxes (Euro m.) 211 362 327
Net income (Euro m.) 143 254 220
Average Sales Price (Euro) 145 134 125
Units shipped in the quarter reached 24.9 million, a 59% increase compared to
the same period last year, generating both year-on-year and sequential market
share gains. Sales for the quarter were Euro 3,112 million, representing a
year-on-year increase of 37%. Income before taxes for the quarter was Euro 327
million, representing a year-on-year increase of 55%. Net income for the quarter
was Euro 220 million. In line with Sony Ericsson expectations, the increase in
Q2 in low and mid-tier priced phones in the product portfolio resulted in a
decline in ASP to Euro 125.
"Sony Ericsson has continued to capture market share in a more competitive
market place with a product offering that addresses a wider consumer audience
than ever before. Our financial results for Q2 2007 reflect our direction to
build our brand in key imaging, music and multimedia categories with a portfolio
that includes more competitively priced phones," said Miles Flint, President of
Sony Ericsson. "We expect the market in 2007 to remain competitive, but with
recently announced products such as the flag-ship Walkman(R) and Cyber-shot(TM)
models we aim to continue to grow faster than the market."
During the quarter Sony Ericsson continued to capture market share in Latin
America, Western Europe and CEEMEA (Central and Eastern Europe, Middle East,
Africa) due to low and mid-tier feature phones such as the W300 and W200 Walkman
(R) phones and the K310 and Z310 phones. At the same time, the company continued
to strengthen its product line up by announcing a large number of new products
across a variety of price points, including the K850, an HSDPA, 5 mega-pixel
flag-ship Cyber-shot(TM) phone, and the W960, a high-end Walkman(R) phone with
8GB of on-board storage.
Following an announcement in January that Sony Ericsson would start the local
manufacture of phones in India through its global manufacturing partners
Flextronics and Foxconn, in Q2 the company extended its commitment to this
important and rapidly growing market by announcing plans to establish its own
research and development unit in Chennai later in the year.
In Q2 new trademark royalty fees were agreed with the parent companies, and
these additional expenses were recorded for the first time in the second
quarter.
Sony Ericsson forecasts that the 2007 global handset market will be above 1.1
billion units. The company grew market share in Q2 2007 around 3 percentage
points to well over 9% compared with the same period last year.
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 serves the global communications market with
innovative and feature-rich mobile phones, accessories and PC-cards. Established
as a joint venture by Sony and Ericsson in 2001, with global corporate functions
located in London, including R&D sites in Europe, Japan, China and America, Sony
Ericsson celebrated the 5th anniversary of the start of the joint venture on 1st
October, 2006. Sony Ericsson is the global 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 on Sony Ericsson,
please visit www.sonyericsson.com
CONTACTS:
Investors/Analysts
Ericsson Investor Relations Sony Investor Relations
Gary Pinkham (Stockholm) +46 8 719 0858 Tatsuyuki Sonoda (Tokyo) +81 3 6748 2180
Shinji Tomita (London) +44 207 444 9713
Press/Media
Sony Ericsson Corporate Communications
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
Apr-Jun
____________________________________
EUR million 2007 2006 Change
_____________________________________________________________________________
Net sales 3,112 2,272 37%
Cost of sales -2,192 -1,625 35%
______________________
Gross profit 921 647 42%
Gross margin % 29.6% 28.5% 1%
Research and development expenses -283 -223 27%
Selling and administrative expenses -321 -246 30%
______________________
Operating expenses -604 -470 29%
Other operating income, net -2 26 -106%
______________________
Operating income 315 203 55%
Operating margin % 10.1% 8.9% 1%
Financial income 18 8 120%
Financial expenses -6 0 -
______________________
Income after financial items 327 211 55%
Taxes -97 -64 53%
Minority interest -10 -5 112%
______________________
Net income 220 143 54%
Number of units shipped (million) 24.9 15.7 59%
ASP (EUR) 125 145 -14%
Sony Ericsson
CONSOLIDATED INCOME STATEMENT
Jan-Jun
____________________________________
EUR million 2007 2006 Change
_____________________________________________________________________________
Net sales 6,037 4,264 42%
Cost of sales -4,231 -3,094 37%
_____________________
Gross profit 1,806 1,170 54%
Gross margin % 29.9% 27.4% 2%
Research and development expenses -544 -425 28%
Selling and administrative expenses -605 -433 40%
_____________________
Operating expenses -1,149 -858 34%
Other operating income, net 4 34 -89%
_____________________
Operating income 662 346 91%
Operating margin % 11.0% 8.1% 3%
Financial income 36 17 115%
Financial expenses -9 0 -
_____________________
Income after financial items 689 363 90%
Taxes -197 -98 102%
Minority interest -18 -13 40%
_____________________
Net income 474 252 88%
Number of units shipped (million) 46.7 29.0 61%
ASP (EUR) 129 147 -12%
Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2007 2006
______________ ___________________________
EUR million Q2 Q1 Q4 Q3 Q2 Q1
Net sales 3,112 2,925 3,782 2,913 2,272 1,992
Cost of sales -2,192 -2,039 -2,686 -1,995 -1,625 -1,469
______________ ___________________________
Gross profit 921 886 1,096 917 647 524
Gross margin % 29.6% 30.3% 29.0% 31.5% 28.5% 26.3%
Research and development expenses -283 -261 -256 -225 -223 -202
Selling and administrative expenses -321 -284 -367 -287 -246 -186
______________ ___________________________
Operating expenses -604 -545 -623 -511 -470 -388
Other operating income, net -2 5 10 21 26 7
______________ ___________________________
Operating income 315 346 484 427 203 143
Operating margin % 10.1% 11.8% 12.8% 14.6% 8.9% 7.2%
Financial income 18 18 19 8 8 9
Financial expenses -6 -2 0 -1 0 0
______________ ___________________________
Income after financial items 327 362 502 433 211 151
Taxes -97 -100 -43 -127 -64 -34
Minority interest -10 -9 -12 -8 -5 -9
______________ ___________________________
Net income 220 254 447 298 143 109
Number of units shipped (million) 24.9 21.8 26.0 19.8 15.7 13.3
ASP (EUR) 125 134 146 147 145 149
Sony Ericsson
CONSOLIDATED BALANCE SHEET
Jun 30 Mar 31 Dec 31 Jun 30
EUR million 2007 2007 2006 2006
_______________________________________________________________________________
ASSETS
Total fixed and financial assets 498 495 469 311
Current assets
Inventories 477 498 437 318
Accounts receivables 1,831 1,566 1,653 1,101
Other assets 845 859 310 196
Other short-term cash investments 1,071 1,376 1,580 897
Cash and bank 659 668 693 698
_____ _____ _____ _____
Total current assets 4,882 4,968 4,673 3,210
_______________________________________________________________________________
Total assets 5,380 5,463 5,141 3,521
_______________________________________________________________________________
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 1,702 2,033 1,781 1,048
Minority interest 63 55 45 59
_____ _____ _____ _____
Total equity 1,764 2,088 1,826 1,106
Total long-term liabilities 21 22 20 17
Accounts payable 1,371 1,316 1,276 954
Other current liabilities 2,224 2,037 2,019 1,444
_____ _____ _____ _____
Total current liabilities 3,595 3,353 3,296 2,398
________________________________________________________________________________
Total shareholders' equity and liabilities 5,380 5,463 5,141 3,521
________________________________________________________________________________
Net cash* 1,729 2,045 2,272 1,556
* Net cash is defined as cash and bank plus short-term cash investments less
interesting bearing liabilities.
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
Apr-Jun
_______________
EUR million 2007 2006
__________________________________________________________________
OPERATIONS
Net income 220 143
Adjustments to reconcile net income to cash 30 22
_______________
250 165
Changes in operating net assets 16 18
Cash flow from operating activities 266 183
INVESTMENTS
Investing activities -31 -29
_______________
Cash flow from investing activities -31 -29
FINANCING
Financing activities -548 26
_______________
Cash flow from financing activities -548 26
Net change in cash -312 180
Cash, beginning of period 2,045 1,428
Translation difference in Cash -3 -13
Cash, end of period 1,730 1,595
__________________________________________________________________
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS
Jan-Jun
_______________
EUR million 2007 2006
__________________________________________________________________
OPERATIONS
Net income 474 252
Adjustments to reconcile net income to cash 58 42
_______________
532 294
Changes in operating net assets -437 71
_______________
Cash flow from operating activities 95 365
INVESTMENTS
Investing activities -85 -72
_______________
Cash flow from investing activities -85 -72
FINANCING
Financing activities -548 -210
_______________
Cash flow from financing activities -548 -210
Net change in cash -538 83
Cash, beginning of period 2,273 1,537
Translation difference in Cash -5 -25
_______________
Cash, end of period 1,730 1,595
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar
_______________________________________________
EUR million 2007 2007 2006 2006 2006 2006
________________________________________________________________________________
OPERATIONS
Net income 220 254 447 298 143 109
Adjustments to reconcile net
income to cash 30 28 23 20 22 20
______________________________________________
250 282 470 318 165 129
Changes in operating net assets 16 -454 50 -21 18 53
_______________________________________________
Cash flow from operating activities 266 -172 520 297 183 182
INVESTMENTS
Investing activities -31 -53 -26 -36 -29 -43
_______________________________________________
Cash flow from investing activities -31 -53 -26 -36 -29 -43
FINANCING
Financing activities -548 - 1 - 66 - 2 26 - 236
_______________________________________________
Cash flow from financing activities -548 -1 -66 -2 26 -236
Net change in cash -312 -226 428 259 180 -97
Cash, beginning of period 2,045 2,273 1,861 1,595 1,428 1,537
Translation difference in Cash -3 -2 -16 7 -13 -12
_______________________________________________
Cash, end of period 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 Q2 Q1 Q4 Q3 Q2 Q1
______________________________________________ __________________________
Europe, Middle East & Africa * 1,729 1,598 2,145 1,600 1,090 1,029
Americas 499 365 555 417 328 250
Asia 885 961 1,082 896 853 713
______________________________________________ __________________________
Total 3,112 2,925 3,782 2,913 2,272 1,992
______________________________________________ __________________________
* of which Western Europe 1,102 1,078 1,478 1,115 748 674
2007 2006
____________ __________________________
Sequential change (%) Q2 Q1 Q4 Q3 Q2 Q1
______________________________________________ __________________________
Europe, Middle East & Africa * 8% -26% 34% 47% 6% -27%
Americas 37% -34% 33% 27% 31% -19%
Asia -8% -11% 21% 5% 20% 20%
______________________________________________ __________________________
Total 6% -23% 30% 28% 14% -14%
______________________________________________ __________________________
* of which Western Europe 2% -27% 33% 49% 11% -35%
2007 2006
____________ __________________________
Year over year change (%) Q2 Q1 Q4 Q3 Q2 Q1
______________________________________________ __________________________
Europe, Middle East & Africa * 59% 55% 52% 35% 43% 71%
Americas 52% 46% 79% 77% 53% 53%
Asia 4% 35% 83% 42% 33% 36%
______________________________________________ __________________________
Total 37% 47% 64% 42% 41% 55%
______________________________________________ __________________________
* of which Western Europe 47% 60% 45% 33% 42% 84%
2007 2006
____________ __________________________
Year to date 0706 0703 0612 0609 0606 0603
______________________________________________ __________________________
Europe, Middle East & Africa * 3,328 1,598 5,865 3,720 2,120 1,029
Americas 864 365 1,550 995 578 250
Asia 1,846 961 3,544 2,462 1,566 713
______________________________________________ __________________________
Total 6,037 2,925 10,959 7,177 4,264 1,992
______________________________________________ __________________________
* of which Western Europe 2,179 1,078 4,014 2,537 1,422 674
2007 2006
____________ __________________________
YTD year over year change (%) 0706 0703 0612 0609 0606 0603
______________________________________________ __________________________
Europe, Middle East & Africa * 57% 55% 48% 46% 56% 71%
Americas 49% 46% 68% 62% 53% 53%
Asia 18% 35% 48% 37% 35% 36%
______________________________________________ __________________________
Total 42% 47% 51% 45% 47% 55%
______________________________________________ __________________________
* of which Western Europe 53% 60% 46% 46% 59% 84%