Sony Ericsson reports first quarter results

Q1 highlights:

Income before taxes was a loss of Euro 358 million (excl. restructuring charges)
Cost saving program progressing as planned and additional savings of Euro 400 million announced
Launch of ‘Entertainment Unlimited’ consumer proposition and new generation of products well received by operator partners
The consolidated financial summary for Sony Ericsson Mobile Communications AB (Sony Ericsson) for the first quarter ended March 31, 2009 is as follows:

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

Units shipped in the quarter were 14.5 million, a decrease of 35% compared to the same period of last year and in line with our March 20, 2009 interim announcement of approximately 14 million units. Sales for the quarter were Euro 1,736 million, a decrease of 36% from a year ago. Sales decreased primarily as a result of continued weak consumer confidence and de-stocking in the retail and distribution channels.

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