Sony and Ericsson today announced the consolidated financial summary for the first quarter ended March 31, 2004 of Sony Ericsson Mobile Communications AB (Sony Ericsson), the 50:50 joint venture of Sony and Ericsson.
Units shipped in the quarter reached 8.8 million, a 63% increase compared to the same period last year. Sales for the quarter were Euro 1,338 million, representing a year-on-year increase of 66%. Income before taxes was Euro 97 million and net income was Euro 82 million, which represent year-on-year improvements of Euro 210 million and Euro 186 million respectively. While the year on year growth in shipments and sales reflects solid performance improvements across business units and regions, income before taxes was exceptionally strong due to favourable market conditions. In addition, the restructuring measures that were taken in 2003 are now fully contributing to the bottom line.
In an overall strong mobile phone market, shipments from Sony Ericsson reached an all time high as its product offering in the mid- and entry level segments continued to gain momentum. Market share is estimated to have increased during the quarter thanks to strong demand and increased operational efficiencies. Sony Ericsson has increased its estimate for the global market for 2004 from approximately 520 million units to over 550 million units.
"A third consecutive quarter of profits and good growth in sales demonstrates that our strategy is paying off. Our focus on GSM, UMTS and Japanese standards has proven successful, and our direction to emphasize imaging, multimedia, entertainment and industrial design is well reflected in our latest product offerings. We will continue to strengthen our innovative and attractive brand, ensuring our products appeal to customers across all market segments and regions", said Katsumi Ihara, President of Sony Ericsson.
During the first quarter Sony Ericsson announced new partnerships as well as exciting products such as the S700, the company's first mega pixel GSM camera phone, and the Z500, its first Push-to-Talk capable product for the American EDGE-networks. In addition, Sony Ericsson announced the K700 imaging phone and a range of innovative Bluetooth accessories which will start shipping during Q2.
Q1 2003 Q4 2003 Q1 2004
Number of units shipped (million) 5.4 8.0 8.8
Sales (EURO m.) 806 1437 1338
Income before taxes (EURO m.) -113 46 97
Net income (EURO m.) -104 43 82
Sony Ericsson Mobile Communications AB offers mobile communications products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM Ericsson and Sony Corporation, the joint venture continues to build on the success of its two innovative parent companies. Sony Ericsson creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company's global headquarters are based in London, and it has approximately 4,000 employees across the globe working on research, development, design, sales, marketing, distribution and support.
For further information, please visit: www.sonyericsson.com
