SON: Sony Corporation: Consolidated Financial Results for the Third Quarter
Ended December 31, 2012
UK Regulatory Announcement
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
3:00 P.M. JST, February 7, 2013
Consolidated Financial Results for the Third Quarter Ended December 31, 2012
Tokyo, February 7, 2013 -- Sony Corporation today announced its consolidated
financial results for the third quarter ended December 31, 2012 (October 1,
2012 to December 31, 2012).
(Billions of yen, millions of U.S. dollars, except per
Third quarter ended December 31
2011 2012 Change 2012^*
Sales and operating ¥1,822.9 ¥1,948.0 +6.9 % $22,391
Operating income (91.7 ) 46.4 - 534
Income (loss) before (105.9 ) 29.4 - 338
attributable to Sony (159.0 ) (10.8 ) - (124 )
attributable to Sony
share of common
- Basic ¥(158.40 ) ¥(10.72 ) - $(0.12 )
- Diluted (158.40 ) (10.72 ) - (0.12 )
* U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of 87 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange
market rate as of December 31, 2012.
All amounts are presented on the basis of Generally Accepted Accounting
Principles in the U.S. (“U.S. GAAP”).
Sony realigned its business segments from the first quarter of the fiscal year
ending March 31, 2013 to reflect modifications to its organizational structure
as of April 1, 2012, primarily repositioning the operations of the previously
reported Consumer Products & Services (“CPS”), Professional, Device &
Solutions (“PDS”) and Sony Mobile Communications (“Sony Mobile”) segments. In
connection with this realignment, the operations of the former CPS, PDS and
Sony Mobile segments are reclassified in five newly established segments,
namely the Imaging Products & Solutions (“IP&S”), Game, Mobile Products &
Communications (“MP&C”), Home Entertainment & Sound (“HE&S”) and Devices
segments, as well as All Other. The previously reported Sony Mobile segment is
now included in the MP&C segment as the Mobile Communications category. The
network business previously included in the CPS segment and the medical
business previously included in the PDS segment are now included in All Other.
For further details regarding segment and category changes, see page 16.
In connection with this realignment, both sales and operating revenue
(“sales”) and operating income (loss) of each segment in the third quarter and
nine months ended December 31, 2011 have been restated to conform to the
current fiscal year’s presentation.
The average foreign exchange rates during the quarters ended December 31, 2011
and 2012 are presented below.
Third quarter ended December 31
2011 2012 Change
The average rate of yen
1 U.S. dollar ¥ 76.4 ¥ 81.2 6.0 % （yen depreciation）
1 Euro 102.8 105.4 2.5 （yen depreciation）
Consolidated Results for the Third Quarter Ended December 31, 2012
Sales were 1,948.0 billion yen (22,391 million U.S. dollars), an increase of
6.9% compared to the same quarter of the previous fiscal year
(“year-on-year”). This increase was primarily due to a significant increase in
sales in the MP&C segment, the Pictures segment and the Financial Services
segment, while sales decreased significantly primarily in the HE&S segment,
resulting from a decrease in LCD television unit sales, and in the Game
segment. On a constant currency basis, sales increased 3% year-on-year. For
further details about sales on a constant currency basis, see Note on page 10.
The significant increase in MP&C segment sales was primarily due to the impact
of the consolidation of Sony Mobile Communications AB (“Sony Mobile,” formerly
known as Sony Ericsson Mobile Communications AB (“Sony Ericsson”)) as a
wholly-owned subsidiary from February 2012. During the same quarter of the
previous fiscal year, Sony Mobile was an affiliated company accounted for
under the equity method. On a pro forma basis, had Sony Mobile been fully
consolidated in the same quarter of the previous fiscal year, consolidated
sales would have remained essentially flat.
Operating income of 46.4 billion yen (534 million U.S. dollars) was recorded,
compared to an operating loss of 91.7 billion yen in the same quarter of the
previous fiscal year. This improvement was primarily due to a 63.4 billion yen
impairment loss on the shares of S-LCD Corporation (“S-LCD”) which were sold
in January 2012 in accordance with the Television Profitability Improvement
Plan, and a 33.0 billion yen valuation allowance which Sony Ericsson recorded
on certain of its deferred tax assets, which were both recorded in equity in
net loss of affiliated companies in the same quarter of the previous fiscal
year. In addition, although operating income significantly decreased in the
Game segment, the Devices segment, which saw a significant increase in sales
of image sensors, and the Pictures segment, which had a significant increase
in motion picture revenues, also contributed to this improvement.
Restructuring charges, net, increased 12.2 billion yen year-on-year to 16.7
billion yen (192 million U.S. dollars). This increase was primarily due to
restructuring initiatives in both the electronics business operations and
Equity in net loss of affiliated companies, recorded within operating income,
decreased 108.4 billion yen year-on-year to 0.4 billion yen (4 million U.S.
dollars). This improvement was primarily due to the recording of equity in net
loss for S-LCD of 66.0 billion yen and equity in net loss for Sony Ericsson of
43.1 billion yen, which were both recorded in the same quarter of the previous
The net effect of other income and expenses was an expense of 17.0 billion yen
(195 million U.S. dollars) in the current quarter, compared to an expense of
14.2 billion yen in the same quarter of the previous fiscal year. This
deterioration was primarily due to a higher loss on the devaluation of
securities investments, partially offset by a decrease in net foreign exchange
Income before income taxes of 29.4 billion yen (338 million U.S. dollars) was
recorded, compared to a loss of 105.9 billion yen recorded in the same quarter
of the previous fiscal year.
Income taxes: During the current quarter, Sony recorded 25.9 billion yen (298
million U.S. dollars) of income tax expense. As of March 31, 2012, Sony had
established a valuation allowance against certain deferred tax assets for Sony
Corporation and its national tax filing group in Japan, the consolidated tax
filing group in the U.S., and certain other subsidiaries. During the current
fiscal year, certain of these tax filing groups and subsidiaries incurred
losses and as such Sony continued to not recognize the associated tax
benefits. As a result, Sony’s effective tax rate for the current quarter
exceeded the Japanese statutory tax rate.
Net loss attributable to Sony Corporation’s stockholders, which excludes net
income attributable to noncontrolling interests, decreased 148.2 billion yen
year-on-year to 10.8 billion yen (124 million U.S. dollars).
To view the full announcement, paste the following link into your web browser:
Press spacebar to pause and continue. Press esc to stop.