SON: Sony Corporation: Consolidated Financial Results for the Second Quarter
Ended September 30, 2013
UK Regulatory Announcement
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
3:00 P.M. JST, October 31, 2013
Consolidated Financial Results for the Second Quarter Ended September 30, 2013
Tokyo, October 31, 2013 -- Sony Corporation today announced its consolidated
financial results for the second quarter ended September 30, 2013 (July 1,
2013 to September 30, 2013).
(Billions of yen, millions of U.S. dollars, except per share amounts)
Second quarter ended September 30
2012 2013 Change in yen 2013^*
Sales and ¥ 1,604 .7 ¥ 1,775 .5 + 10 .6 % $ 18,117
Operating income 30 .3 14 .8 - 51 .2 151
Income before 19 .7 6 .0 - 69 .6 61
Sony (15 .5 ) (19 .3 ) - (197 )
share of common
- Basic ¥ (15 .41 ) ¥ (18 .91 ) - $ (0 .19 )
- Diluted (15 .41 ) (18 .91 ) - (0 .19 )
* U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of 98 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange
market rate as of September 30, 2013.
All amounts are presented on the basis of Generally Accepted Accounting
Principles in the U.S. (“U.S. GAAP”).
The average foreign exchange rates during the quarters ended September 30,
2012 and 2013 are presented below.
Second quarter ended September 30
2012 2013 Change
The average rate of
1 U.S. dollar ¥ 78.6 ¥ 98.9 20.5 % （yen depreciation）
1 Euro 98.4 131.1 24.9 （yen depreciation）
Consolidated Results for the Second Quarter Ended September 30, 2013
Sales and operating revenue (“sales”) were 1,775.5 billion yen (18,117 million
U.S. dollars), an increase of 10.6% compared to the same period of the
previous fiscal year (“year-on-year”). This increase was primarily due to the
favorable impact of foreign exchange rates and a significant increase in sales
of smartphones, partially offset by the absence of sales from the chemical
products related business which was sold in September 2012, as well as a
decrease in sales of video cameras and compact digital cameras. On a constant
currency basis, sales decreased 9% year-on-year. For further details about
sales on a constant currency basis, see Note on page 9.
Operating income decreased 15.5 billion yen year-on-year to 14.8 billion yen
(151 million U.S. dollars). This significant decrease was primarily due to a
significant decline in operating results in the Pictures segment, partially
offset by a significant improvement in the Mobile Products & Communications
(“MP&C”) segment, reflecting strong smartphone sales, and the favorable impact
of foreign exchange rates.
Operating income during the current quarter includes a gain of 12.8 billion
yen (131 million U.S. dollars) from the sale of certain shares of M3, Inc.
(“M3”) in All Other. The current quarter’s results include a net benefit of
4.8 billion yen (49 million U.S. dollars) from insurance recoveries related to
damages and losses incurred from the floods in Thailand in the fiscal year
ended March 31, 2012 (the “Floods”). In the same quarter of the previous
fiscal year, a net benefit of 13.2 billion yen from the above-mentioned
insurance recoveries, and a gain of 8.2 billion yen from the sale of the
chemical products related business were recorded.
During the current quarter, restructuring charges, net, decreased 3.7 billion
yen year-on-year to 7.8 billion yen (80 million U.S. dollars).
Equity in net loss of affiliated companies, recorded within operating income,
decreased 1.1 billion yen year-on-year to 2.0 billion yen (21 million U.S.
The net effect of other income and expenses was an expense of 8.8 billion yen
(90 million U.S. dollars), an improvement of 1.8 billion yen year-on-year.
Income before income taxes decreased 13.7 billion yen year-on-year to 6.0
billion yen (61 million U.S. dollars).
Income taxes: During the current quarter, Sony recorded 11.6 billion yen (119
million U.S. dollars) of income tax expense. As of March 31, 2013, 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 a result 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, increased 3.8 billion yen
year-on-year to 19.3 billion yen (197 million U.S. dollars).
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