October 14, 2004
Tokyo and Stockholm -- Sony and Ericsson today announced the consolidated financial summary for the third quarter ended September 30, 2004 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson.
Units shipped in the quarter reached 10.7 million, a 51% increase compared to the same period last year. Sales for the quarter were Euro 1,678 million, representing a year-on-year increase of 29%. Income before taxes was Euro 136 million and net income was Euro 90 million, which represent year-on-year improvements of Euro 97 million (249%) and Euro 28 million (45%) respectively.
The company maintained its momentum from the first half of the year, generating profitable growth. Sony Ericsson's Average Selling Price (ASP) increased sequentially in line with company expectations due to new mid and high-end Japanese and GSM products beginning to ship.
"Sony Ericsson has enhanced its portfolio during the quarter with the launch of exciting products. Over 60% of phones sold during the quarter featured integrated cameras which illustrates our position as a market leader in mobile imaging," said Miles Flint, President of Sony Ericsson. "The quarter has seen us shipping a number of new products such as our first GSM megapixel camera phone, the S700, the new P910 smartphone and the youth orientated K500 series. In addition we also announced together with Vodafone the V800, our second 3G UMTS handset."
In Japan the company launched the mova® SO506iC for NTT DoCoMo, Sony Ericsson's first handset with i-mode® FeliCa Service for mobile wallet applications1 and the W21S, a 3G CDMA 1x EV-DO phone for KDDI.
||Q2 2004||Q3 2004|
|Numbers of units shipped (million)||7.1||10.4||10.7|
|Sales (EURO m.)||1,305||1,504||1,678|
|Income before taxes (EURO m.)||39||113||136|
|Net income (EURO m.)||62||89||90|
Ericsson Investor Relations
Gary Pinkham, Vice President (Sweden) +46 8 719 0000
Sony Investor Relations
Yukio Ozawa, Vice President (Tokyo) +81 3 5448 2180
Chris Hohman, Senior Manager (London) +44 20 7444 9711
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.