a6074309.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 October 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: October 16, 2009

List of materials

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

 
LOGO
 
PRESS RELEASE October 16, 2009
 
                                                                                      
Sony Ericsson reports third quarter results

Q3 highlights:
·   
Decline in global handset market slowing down
·   
Positive trend from continuing transformation programme
·   
External financing arranged
·   
Refreshed brand in time for Aino™ and Satio™ launch in Q4

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

    Q3 2008     Q2 2009     Q3 2009  
Number of units shipped (million)
  25.7     13.8     14.1  
Sales (Euro m.)
  2,808     1,684     1,619  
Gross margin (%)
  22 %   12 %   16 %
Operating income (Euro m.)
  -33     -274     -193  
Operating margin (%)
  -1 %   -16 %   -12 %
   Restructuring charges (Euro m.)
  35     1     2  
   Operating income excl. restructuring charges (Euro m.)
  2     -274     -191  
   Operating margin excl. restructuring charges (%)
  0 %   -16 %   -12 %
Income before taxes (IBT) (Euro m.)
  -23     -283     -199  
   IBT excl. restructuring charges (Euro m.)
  12     -283     -198  
Net income (Euro m.)
  -25     -213     -164  
                   
Average selling price (Euro)
  109     122     114  

Units shipped in the quarter were 14.1 million, an increase of 2% quarter-on-quarter and a decrease of 45% year-on-year. Sales for the quarter were Euro 1,619 million, a sequential decrease of 4% and a year-on-year decrease of 42%. The sequential decline in ASP (Average Selling Price) was due to product mix and continued challenging market conditions.

Gross margin improved sequentially but dropped year-on-year due to lower sales and foreign exchange fluctuations.  The sequential improvement was seen in both percentage rate and volume, driven by cost savings actions and successful sales of the W995 Walkman® phone.

Income before taxes for the quarter, excluding restructuring charges, was a loss of Euro 198 million compared to a loss of Euro 283 million from the previous quarter. The reduced loss was due to better gross margin, as well as reduced operating expenses.

“Our business in the third quarter started to show the effects of our ongoing transformation programme.  Having refreshed our brand, we are now better positioned to support the launch of new products such as Aino and Satio in Q4 2009.  We have cleared channel inventories, and have continued to realign internal resources and improve efficiency. We have also arranged external financing to strengthen the company's financial position,” said Dick Komiyama, outgoing President, Sony Ericsson. “Transforming the business for future growth and returning Sony Ericsson to profitability is the focus of the senior management team and will continue under the new leadership.”

As of September 30, 2009, Sony Ericsson had a net cash position of Euro 841 million.
 

 
Since the beginning of the quarter, facilities of Euro 455 million were signed to strengthen the balance sheet and improve liquidity. Euro 155 million were drawn by the end of September and Euro 100 million were drawn in the beginning of October. In addition, a two-year committed back-up facility of Euro 200 million is available but has not been utilized. The parent companies have guaranteed Euro 350 million of these facilities on a 50/50 basis.

Programmes started since mid 2008 to reduce annual operating expenses by Euro 880 million are continuing, with the full benefit expected during the second half of 2010. The total restructuring charges for these programmes are estimated to be well within the previously announced Euro 500 million.

As of October 15, 2009; Sir Howard Stringer, Chairman, CEO and President of Sony Corporation and a member of the Sony Ericsson board, became Chairman of the Sony Ericsson board succeeding Carl-Henric Svanberg.  At the same time, Bert Nordberg became President of Sony Ericsson succeeding Dick Komiyama, who remains as Executive Advisor until the end of 2009.

Sony Ericsson forecasts that the global handset market for 2009 will contract by approximately 10% from around 1,190 million units in 2008. Sony Ericsson estimates that its market share in units was about 5% in the third quarter.

The liquid identity is a registered trademark of Sony Ericsson Mobile Communications AB.
Satio™ and Aino™ are trademarks or registered trademarks of Sony Ericsson Mobile Communications AB.
WALKMAN® is a trademark of Sony Corporation.
Sony is a registered trademark of Sony Corporation. Ericsson is a registered trademark of Telefonaktiebolaget LM Ericsson.
Any rights not expressly granted herein are reserved. Subject to change without prior notice.


A live webcast of the conference call will be available on October 16, 2009 at the following times:

 
TIMING
14:00 UK time (BST) 
15:00 Central European time (CET) 
09:00 US Eastern time (EDT) 
22:00 Japan time (JST)
 
 
WEBCAST:
A live webcast of the conference call will be available at: http://www.ericsson.com/ericsson/investors/ 
 
Or please click here to join the webcast directly:
http://www.thomson-webcast.net/uk/dispatching/?event_id=191bc04e8408cb47571b7b46c700aca4&portal_id=ccec29148a44ec4b8077c845c5b4cbba

The archived webcast will be available approximately one hour after the completion of the conference call.
 
 
CALL-IN NUMBERS:
UK and Europe:   +44 20 7806 1951
Sweden:                +46 8 5352 6408
US:                       +1 718 354 1385
Japan:                   +81 3 3570 8227

 
REPLAY:
A replay of the conference call will be available approximately two hours after the completion of the conference call until 11:00 pm UK time on October 21, 2009.
 
UK and Europe:   +44 20 7111 1244
Sweden:                +46 8 5051 3897
US:                       +1 347 366 9565
Japan:                   +81 3 5767 9615
 
Replay passcode:  2462154#
 


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 50:50 joint venture by Sony and Ericsson established in October 2001, with global corporate functions located in London and operations in all major markets.  Our vision is to become the industry leader in Communication Entertainment; where new styles of communicating through the internet and social media, become entertainment.  Sony Ericsson offers exciting consumer experiences through phones, accessories, content and applications.  For more information 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
Lars Jacobsson (Stockholm)                  +46 10 719 9489                                

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

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

   
Jul-Sep
 
EUR million
 
2009
   
2008
   
Change
 
                   
Net sales
    1,619       2,808       -42 %
Cost of sales
    -1,367       -2,192       -38 %
Gross profit
    252       616       -59 %
Gross margin %
    15.5 %     21.9 %     -6 %
                         
Research and development expenses
    -260       -337       -23 %
Selling and administrative expenses
    -205       -303       -32 %
Operating expenses
    -465       -640       -27 %
                         
Other operating income, net
    21       -8       356 %
Operating income
    -193       -33       488 %
Operating margin %
    -11.9 %     -1.2 %     -11 %
                         
Financial income
    3       25       -88 %
Financial expenses
    -9       -15       -36 %
Income after financial items
    -199       -23       776 %
                         
Taxes
    42       6       549 %
Minority interest
    -6       -8       -26 %
Net income
    -164       -25       565 %
                         
                         
Number of units shipped (million)
    14.1       25.7       -45 %
ASP (EUR)
    114       109       5 %
                         
                         
                         
                         
EUR Million
 
Jul-Sep
   
Jul-Sep
         
Restructuring charges
    2009       2008          
  Cost of sales
    0       0          
  Research and development expenses
    1       26          
  Sales and administrative expenses
    1       3          
  Other operating income, net
    0       6          
Total
    2       35          
 


Sony Ericsson
CONSOLIDATED INCOME STATEMENT

   
Jan-Sep
 
EUR million
 
2009
   
2008
   
Change
 
                   
Net sales
    5,038       8,330       -40 %
Cost of sales
    -4,441       -6,274       -29 %
Gross profit
    597       2,056       -71 %
Gross margin %
    11.9 %     24.7 %     -13 %
                         
Research and development expenses
    -808       -1,020       -21 %
Selling and administrative expenses
    -665       -883       -25 %
Operating expenses
    -1,473       -1,903       -23 %
                         
Other operating income, net
    39       -3       -1233 %
Operating income
    -837       149       -661 %
Operating margin %
    -16.6 %     1.8 %     -18 %
                         
Financial income
    18       73       -76 %
Financial expenses
    -34       -44       -23 %
Income after financial items
    -853       179       -577 %
                         
Taxes
    200       -50       -499 %
Minority interest
    -16       -14       15 %
Net income
    -669       114       -685 %
                         
                         
Number of units shipped (million)
    42.5       72.5       -41 %
ASP (EUR)
    119       115       3 %
                         
                         
                         
                         
EUR Million
 
Jan-Sep
   
Jan-Sep
         
Restructuring charges
    2009       2008          
  Cost of sales
    -2       8          
  Research and development expenses
    12       28          
  Sales and administrative expenses
    4       4          
  Other operating income, net
    0       6          
Total
    15       46          
 


Sony Ericsson
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
 
   
2009
   
2008
 
EUR million
    Q3       Q2       Q1       Q4       Q3       Q2       Q1  
                                                         
Net sales
    1,619       1,684       1,736       2,914       2,808       2,820       2,702  
Cost of sales
    -1,367       -1,483       -1,591       -2,476       -2,192       -2,168       -1,914  
Gross profit
    252       200       145       438       616       653       788  
Gross margin %
    15.50 %     11.90 %     8.40 %     15.00 %     21.90 %     23.10 %     29.20 %
                                                         
Research and development expenses
    -260       -245       -303       -359       -337       -344       -339  
Selling and administrative expenses
    -205       -235       -225       -366       -303       -310       -270  
Operating expenses
    -465       -480       -528       -725       -640       -653       -610  
                                                         
Other operating income, net
    21       6       13       24       -8       -2       6  
Operating income
    -193       -274       -369       -262       -33       -2       184  
Operating margin %
    -11.90 %     -16.30 %     -21.30 %     -9.00 %     -1.20 %     -0.10 %     6.80 %
                                                         
Financial income
    3       6       9       28       25       25       24  
Financial expenses
    -9       -15       -10       -27       -15       -14       -15  
Income after financial items
    -199       -283       -370       -261       -23       8       193  
                                                         
Taxes
    42       74       84       81       6       0       -57  
Minority interest
    -6       -4       -6       -7       -8       -3       -3  
Net income
    -164       -213       -293       -187       -25       6       133  
                                                         
                                                         
Number of units shipped (million)
    14.1       13.8       14.5       24.2       25.7       24.4       22.3  
ASP (EUR)
    114       122       120       121       109       116       121  
                                                         
                                                         
                                                         
                                                         
EUR Million
    2009       2008          
Restructuring charges
    Q3       Q2       Q1       Q4       Q3       Q2          
  Cost of sales
    0       -9       7       67       0       8          
  Research and development expenses
    1       9       2       35       26       2          
  Sales and administrative expenses
    1       1       3       24       3       1          
  Other operating income, net
    0       0       0       3       6       0          
Total
    2       1       12       129       35       11          
 

 
Sony Ericsson
CONSOLIDATED BALANCE SHEET

   
Sep 30
   
Jun 30
   
Dec 31
   
Sep 30
 
EUR million
 
2009
   
2009
   
2008
   
2008
 
                         
ASSETS
                       
                         
Total fixed and financial assets
    757       736       590       649  
                                 
Current assets
                               
Inventories
    397       404       531       717  
Accounts receivables
    917       936       1,629       1,815  
Other assets
    416       379       585       527  
Other short-term cash investments
    464       456       707       918  
Cash and bank
    532       509       418       555  
Total current assets
    2,726       2,685       3,870       4,532  
                                 
                                 
Total assets
    3,482       3,421       4,460       5,180  
                                 
SHAREHOLDERS' EQUITY AND LIABILITIES                                
                                 
Shareholders' equity
    532       694       1,217       1,429  
Minority interest
    43       66       57       50  
Total equity
    575       760       1,274       1,480  
                                 
Total long-term liabilities
    81       30       30       39  
                                 
Accounts payable
    1,019       848       990       1,453  
Other current liabilities
    1,807       1,782       2,166       2,208  
Total current liabilities
    2,826       2,630       3,156       3,661  
                                 
Total shareholders' equity and liabilities
    3,482       3,421       4,460       5,180  
                                 
Net cash*
    841       965       1,072       1,374  

* Net cash is defined as cash and bank plus short-term cash investments less interest bearing liabilities.
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Jul-Sep
 
EUR million
 
2009
   
2008
 
             
OPERATIONS
           
Net income
    -164       -25  
Adjustments to reconcile net income to cash
    20       39  
      -143       15  
                 
Changes in operating net assets
    49       88  
Cash flow from operating activities
    -94       102  
                 
INVESTMENTS
               
Investing activities
    -42       -55  
Cash flow from investing activities
    -42       -55  
                 
FINANCING
               
Financing activities
    159       - 238  
Cash flow from financing activities
    159       -238  
                 
Net change in cash
    22       -191  
Cash, beginning of period
    965       1,591  
Translation difference in Cash
    9       74  
Cash, end of period
    996       1,473  
 


Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS

   
Jan-Sep
 
EUR million
 
2009
   
2008
 
             
OPERATIONS
           
Net income
    -669       114  
Adjustments to reconcile net income to cash
    87       108  
      -583       223  
                 
Changes in operating net assets
    431       -155  
Cash flow from operating activities
    -152       68  
                 
INVESTMENTS
               
Investing activities
    -74       -105  
Cash flow from investing activities
    -74       -105  
                 
FINANCING
               
Financing activities
    106       -708  
Cash flow from financing activities
    106       -708  
                 
Net change in cash
    -120       -745  
Cash, beginning of period
    1,125       2,155  
Translation difference in Cash
    -9       62  
Cash, end of period
    996       1,473  
 

 
Sony Ericsson
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS

   
2009
   
2008
 
EUR million
 
Jul-Sep
   
Apr-Jun
   
Jan-Mar
   
Oct-Dec
   
Jul-Sep
   
Apr-Jun
   
Jan-Mar
 
                                           
OPERATIONS
                                         
Net income
    -164       -213       -293       -187       -25       6       133  
Adjustments to reconcile net income to cash
    20       37       29       37       39       40       31  
      -143       -176       -263       -150       15       46       164  
                                                         
Changes in operating net assets
    49       60       321       -168       88       -142       -101  
Cash flow from operating activities
    -94       -115       58       -318       102       -96       64  
                                                         
INVESTMENTS
                                                       
Investing activities
    -42       -13       -19       41       -55       -29       -22  
Cash flow from investing activities
    -42       -13       -19       41       -55       -29       -22  
                                                         
FINANCING
                                                       
Financing activities
    159       0       - 53       - 46       - 238       - 8       - 462  
Cash flow from financing activities
    159       0       -53       -46       -238       -8       -462  
                                                         
Net change in cash
    22       -128       -14       -323       -191       -133       -421  
Cash, beginning of period
    965       1,116       1,125       1,473       1,591       1,711       2,155  
Translation difference in Cash
    9       -23       5       -25       74       13       -24  
Cash, end of period
    996       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
    Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    875       927       977       1,642       1,427       1,386       1,494  
Americas
    232       195       200       636       703       740       486  
Asia
    512       562       559       636       678       694       722  
Total
    1,619       1,684       1,736       2,914       2,808       2,820       2,702  
* of which Western Europe
    636       678       721       1,117       947       900       979  
                                                         
                                                         
      2009       2008  
Sequential change (%)
    Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    -6 %     -5 %     -40 %     15 %     3 %     -7 %     -34 %
Americas
    19 %     -3 %     -69 %     -10 %     -5 %     52 %     -24 %
Asia
    -9 %     1 %     -12 %     -6 %     -2 %     -4 %     -18 %
Total
    -4 %     -3 %     -40 %     4 %     0 %     4 %     -28 %
* of which Western Europe
    -6 %     -6 %     -35 %     18 %     5 %     -8 %     -38 %
                                                         
                                                         
      2009       2008  
Year over year change (%)
    Q3       Q2       Q1       Q4       Q3       Q2       Q1  
Europe, Middle East & Africa *
    -39 %     -33 %     -35 %     -27 %     -17 %     -20 %     -7 %
Americas
    -67 %     -74 %     -59 %     0 %     23 %     48 %     33 %
Asia
    -25 %     -19 %     -23 %     -28 %     -17 %     -21 %     -25 %
Total
    -42 %     -40 %     -36 %     -23 %     -10 %     -9 %     -8 %
* of which Western Europe
    -33 %     -25 %     -26 %     -29 %     -14 %     -18 %     -9 %
                                                         
                                                         
      2009       2008  
Year to date
    909       906       903       812       809       806       803  
Europe, Middle East & Africa *
    2,778       1,903       977       5,947       4,306       2,879       1,494  
Americas
    627       395       200       2,566       1,930       1,226       486  
Asia
    1,633       1,121       559       2,731       2,094       1,416       722  
Total
    5,038       3,419       1,736       11,244       8,330       5,522       2,702  
* of which Western Europe
    2,036       1,400       721       3,943       2,826       1,879       979  
                                                         
                                                         
      2009       2008  
YTD year over year change (%)
    909       906       903       812       809       806       803  
Europe, Middle East & Africa *
    -35 %     -34 %     -35 %     -18 %     -15 %     -13 %     -7 %
Americas
    -67 %     -68 %     -59 %     24 %     34 %     42 %     33 %
Asia
    -22 %     -21 %     -23 %     -23 %     -21 %     -23 %     -25 %
Total
    -40 %     -38 %     -36 %     -13 %     -9 %     -9 %     -8 %
* of which Western Europe     -28 %     -26 %     -26 %     -19 %     -14 %     -14 %     -9 %