Sony Corporation
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
No: 07-066E
3:00 P.M. JST, July 26, 2007
Consolidated Financial Results
for the First Quarter Ended June 30, 2007
Tokyo, July 26, 2007 -- Sony Corporation today announced its
consolidated results for the first quarter of the fiscal year
ending March 31, 2008 (April 1, 2007 to June 30, 2007).
(Billions of yen, millions of U.S. dollars, except per share amounts)
First quarter ended June 30
2006 2007 Change 2007*
in Yen
-------- -------- ------ -------
Sales and operating Y1,744.2 Y1,976.5 +13.3% $16,069
revenue
Operating income 27.0 99.3 +267.2 808
Income before income 54.0 83.8 + 55.0 681
taxes
Equity in net income 3.6 22.0 +506.4 178
of affiliated
companies
Net income 32.3 66.5 +105.8 540
Net income per share
of common stock
- Basic Y32.25 Y66.29 +105.6 $0.54
- Diluted 30.75 63.14 +105.3 0.51
Unless otherwise specified, all amounts are presented on the
basis of Generally Accepted Accounting Principles in the U.S.
("U.S. GAAP").
* U.S. dollar amounts have been translated from yen, for
convenience only, at the rate of Y123=U.S.$1, the approximate
Tokyo foreign exchange market rate as of June 29, 2007.
Consolidated Results for the First Quarter Ended June 30, 2007
--------------------------------------------------------------
Sales and operating revenue ("sales") increased 13.3% (a 7%
increase on a local currency basis) compared with the same
quarter of the previous fiscal year. (For all references herein
to sales on a local currency basis, see Note.)
Electronics segment sales increased 11.6% (a 4% increase on a
local currency basis). Products such as Cyber-shot(TM)digital
cameras, BRAVIA(TM)LCD televisions and Handycam(R) video cameras
contributed to the sales increase; however, sales declined for
products such as LCD rear-projection televisions and CRT
televisions. In the Game segment, sales increased 60.5% compared
to the same quarter of the previous fiscal year primarily as a
result of the contribution to sales from PLAYSTATION(R)3 ("PS3"),
which was released during the second half of last fiscal year.
In the Pictures segment, there was a 13.0% increase in revenue
mainly due to the highly successful worldwide theatrical
performance of Spider-Man 3. In the Financial Services segment,
revenue increased by 48.9% mainly due to an improvement in both
valuation gains (losses) from convertible bonds in the general
account and gains (losses) from investments in the separate
account at Sony Life Insurance Co., Ltd. ("Sony Life").
Operating income increased 267.2% to Y99.3 billion ($808
million) compared to the same quarter of the previous fiscal
year.
In the Electronics segment, operating income increased 77.3%
compared to the same quarter of the previous fiscal year. This
was primarily due to a positive impact from the depreciation of
the yen versus the U.S. dollar and the Euro, as well as an
increase in sales of semiconductors to the Game segment. In the
Game segment, the operating loss increased primarily due to the
loss arising from strategic pricing of PS3 at points lower than
its production cost. In the Pictures segment, operating income
was recorded compared to an operating loss recorded in the same
quarter of the previous fiscal year primarily as a result of
higher sales in the home entertainment market of prior fiscal
year films as well as lower overall theatrical marketing
expenses on upcoming summer releases incurred in the current
quarter. In the Financial Services segment, there was an
increase in operating income mainly attributable to the
above-mentioned improvement in valuation gains (losses) from
convertible bonds in the general account at Sony Life.
Restructuring charges, which are recorded as operating expenses,
amounted to Y3.4 billion ($28 million) for the quarter compared
to Y10.7 billion for the same quarter of the previous fiscal
year. In the Electronics segment, restructuring charges were
Y2.6 billion ($21 million) compared to Y10.1 billion in the same
quarter of the previous fiscal year.
Income before income taxes increased 55.0% compared to the same
quarter in the previous fiscal year due to the increase in
operating income mentioned above, although there was a decrease
in the net effect of other income and expenses. The lower net
effect of other income and expenses was a result of the
recording of a net foreign exchange loss in the current quarter
versus the net foreign exchange gain recorded in the same
quarter of the previous fiscal year. In addition, there was a
gain of Y18.0 billion recorded for the change in ownership
interests in subsidiaries and investees during the same quarter
in the previous fiscal year from the sale of a majority
ownership interest in StylingLife Holdings Inc. ("StylingLife"),
a holding company comprised of Sony's six retail businesses.
Income taxes: During the current quarter, Sony recorded Y39.7
billion ($322 million) of income taxes resulting in an effective
tax rate of 47.3%. The effective tax rate for the current
quarter exceeded the Japanese statutory tax rate primarily due
to the recording of an additional tax provision for the
undistributed earnings of Sony Ericsson Mobile Communications AB
("Sony Ericsson").
Equity in net income of affiliated companies increased 506.4% to
Y22.0 billion ($178 million) compared to the same quarter of the
previous fiscal year. Sony recorded equity in net income for
Sony Ericsson of Y17.7 billion ($144 million), an increase of
Y7.5 billion compared to the same quarter of the previous year.
Sony also recorded equity in net income of Y1.2 billion ($10
million) for SONY BMG MUSIC ENTERTAINMENT ("SONY BMG"), an
improvement of Y5.8 billion from the equity in net loss recorded
in the same quarter of the previous fiscal year, primarily due
to lower marketing, overhead and restructuring expenses as well
as a gain on the sale of an interest in a joint venture of SONY
BMG. Equity in net income of Y1.5 billion ($12 million) was
recorded for S-LCD Corporation, a joint-venture with Samsung
Electronics Co., Ltd., an improvement of Y1.8 billion compared
to the same quarter of the previous fiscal year.
Sony did not record any equity gain or loss for
Metro-Goldwyn-Mayer Inc. ("MGM") during the current quarter
compared to equity in net loss of Y2.6 billion recorded in the
same quarter of the prior fiscal year. As of March 31, 2007,
Sony no longer has any book basis in MGM and accordingly, no
additional losses are recorded.
As a result of the changes in the items discussed above, net
income increased 105.8% to Y66.5 billion ($540 million) compared
to the same quarter of the previous fiscal year.
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Investor Relations Contacts:
----------------------------
Tokyo New York London
Tatsuyuki Sonoda Sam Levenson/Justin Shinji Tomita
Hill/Miki Emura
+81-(0)3-67 48-2180 +1-212-833-6722 +44-(0)20-7444-9713
Home Page: http://www.sony.net/IR/
This information is provided by RNS
The company news service from the London Stock Exchange
Sony Corp - First Quarter Results
| Source: Sony Corp
Tokyo, Japan--(Marketwire - July 26, 2007) -