Electronics Production | October 16, 2009
Sony Ericsson sales down 42% Y-o-Y in 3Q
Sales for the quarter were €1,619 million, a sequential decrease of 4% and a year-on-year decrease of 42%.
Income before taxes for the quarter, excluding restructuring charges, was a loss of €198 million compared to a loss of €283 million from the previous quarter. The reduced loss was due to better gross margin, as well as reduced operating expenses. 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.