Sony Ericsson Report in Q1 2009

Q1 2008

Q4 2008

Q1 2009

Number of units shipped (million)

22.3

24.2

14.5

Sales (Euro m.)

2,702

2,914

1,736

Gross margin (%)

29%

15%

8%

Operating income (Euro m.)

184

-262

-369

Operating margin (%)

7%

-9%

-21%

Restructuring charges (Euro m.)

-

129

12

Operating income excl. restructuring
charges (Euro m.)

-

-133

-357

Operating margin excl. restructuring charges (%)

-

-5%

-21%

Income before taxes (IBT) (Euro m.)

193

-261

-370

IBT excl. restructuring charges (Euro m.)

-

-133

-358

Net income (Euro m.)

133

-187

-293

Average selling price (Euro)

121

121

120

The report shows the decrease in the Q1 2009 compared with 2008. The decrease is about 35% for unit shipped and 36% for sales. The reasons of that decrease are weak confidence from consumer as well as retail and distribution’s de-stocking. Finally, the gross margin also decline, so also is the income which loss somewhere between 340 – 390 millions Euro according to March 20 report.

Dick Komiyama, Sony Ericsson president, said that they aim to bring back Sony Ericsson to the profitability. In order to reach that, the company will work in a program to get annual cost reduction about 400 million Euro. The program will end in the middle of 2010. So far the cost reduction program has worked in workforce reduction step by step.

At MWC 2009, Entertainment Unlimited series has announced by Sony Ericsson to be the leader in imaging, gaming, app and so on in purpose of delivering unlimited opportunities to users. The first product of Entertainment Unlimited is Idou, announced in May 28.

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