SON: Sony Corporation: Consolidated Financial Results for the Third Quarter
Ended December 31, 2013
UK Regulatory Announcement
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan
3:00 P.M. JST, February 6, 2014
Consolidated Financial Results for the Third Quarter Ended December 31, 2013
Tokyo, February 6, 2014 -- Sony Corporation today announced its consolidated
financial results for the third quarter ended December 31, 2013 (October 1,
2013 to December 31, 2013).
(Billions of yen, millions of U.S. dollars, except per share amounts)
Third quarter ended December 31
2012 2013 Change in yen 2013^*
operating ¥ 1,948 .0 ¥ 2,412 .8 +23 .9 % $ 22,979
Operating 46 .4 90 .3 +94 .6 860
Income before 29 .4 89 .8 +205 .0 855
attributable (10 .8) 27 .0 - 257
per share of
- Basic ¥ (10 .72) ¥ 26 .00 - $ 0.25
- Diluted (10 .72) 23 .09 - 0.22
* U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of 105 yen = 1 U.S. dollar, the approximate Tokyo foreign exchange
market rate as of December 31, 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 December 31, 2012
and 2013 are presented below.
Third quarter ended December 31
2012 2013 Change
The average rate
1 U.S. ¥ 81.2 ¥ 100.5 19.1 % （yen depreciation
1 Euro 105.4 136.7 22.9 （yen depreciation
Consolidated Results for the Third Quarter Ended December 31, 2013
Sales and operating revenue (“sales”) were 2,412.8 billion yen (22,979 million
U.S. dollars), an increase of 23.9% 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, the launch of the PlayStation®4
(PS4™), as well as a significant increase in sales of smartphones. On a
constant currency basis, sales increased 5% year-on-year. For further details
about sales on a constant currency basis, see Note on page 10.
Operating income increased 43.9 billion yen year-on-year to 90.3 billion yen
(860 million U.S. dollars). This increase was primarily due to the favorable
impact of foreign exchange rates, a significant improvement in the operating
results of the Home Entertainment and Sound (“HE&S”) segment reflecting a
decrease in loss in Televisions, a significant increase in operating income in
the Game segment reflecting the launch of the PS4, and a significant increase
in operating income in the Financial Services segment. The current quarter’s
results include a 32.1 billion yen (306 million U.S. dollars) impairment
charge related to long-lived assets in the battery business in the Devices
segment, an 8.2 billion yen (78 million U.S. dollars) impairment charge for
long-lived assets in the PC business in the Mobile Products & Communications
(“MP&C”) segment and a 6.2 billion yen (59 million U.S. dollars) write-off of
certain PC software titles in the Game segment.
During the current quarter, restructuring charges, net, decreased 3.0 billion
yen year-on-year to 13.7 billion yen (130 million U.S. dollars).
Equity in net income of affiliated companies, recorded within operating
income, of 1.7 billion yen (16 million U.S. dollars) was recorded, compared
with a loss of 0.4 billion yen in the same quarter of the previous fiscal
year. This improvement was mainly due the recording of equity in net income
for EMI Music Publishing compared to equity in net loss in the same quarter of
the previous fiscal year.
The net effect of other income and expenses was an expense of 0.6 billion yen
(5 million U.S. dollars), an improvement of 16.4 billion yen year-on-year.
This improvement was primarily due to an increase in gain on sale of
securities investments and a lower loss on the devaluation of securities
investments. The sale of securities investments in the current quarter
includes a 7.4 billion yen (71 million U.S. dollars) gain on the sale of
Sony’s shares in Sky Perfect JSAT Holdings Inc., which were sold in December
Income before income taxes increased 60.3 billion yen year-on-year to 89.8
billion yen (855 million U.S. dollars).
Income taxes: During the current quarter, Sony recorded 46.1 billion yen (439
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 income attributable to Sony Corporation’s stockholders, which excludes net
income attributable to noncontrolling interests, was 27.0 billion yen (257
million U.S. dollars) compared to a net loss of 10.8 billion yen in the same
quarter of the previous fiscal year.
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