This morning, Sony Corporation announced its consolidated results covering the third quarter ended December 31st, 2003. During the quarter, Sony announced sales and operating revenue to be at 2,323.4 billion yen, up 0.7 over last year's 2,307.7 billion yen. Operating income was at 158.8 billion yen, down 20.4 percent from last year, and net income was at 92.6 billion yen; down 26.2 percent from last year's 125.4 billion yen. As far as the games segment goes, Sony reported that operating income fell slightly, despite contributions of the PlayStation 2. This was reportedly because of R&D expenses. Moreover, Sony reported that PlayStation software unit sales fell during the quarter; with hardware not faring well either. Software production shipments for PlayStation 2 were reported at 104 million, up 25 percent. Meanwhile, company reported worldwide hardware shipments for PlayStation 2 during the quarter at 6.83 million (down 1.20 million units). PlayStation hardware figures were at 1.02 million units (down 2 million units). Check back later in the morning for more news.
Sony Q3 down..
- Thread starter chapban.
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The other stuff for the interested
Sony 3rd-Qtr Profit Falls 26%; Annual Forecast Raised (Update3)
Jan. 28 (Bloomberg) -- Sony Corp., the world's second-largest consumer-electronics maker, said third-quarter net income fell 26 percent as PlayStation 2 game console revenue shrank and it was unable to match year-earlier movie hits such as ``Spider-Man.''
Group net income fell to 92.6 billion yen ($874 million), or 93.14 yen a share, during the three months ended Dec. 31, from 125.5 billion yen, or 126.05 yen a share, a year earlier. It took charges of 53.6 billion yen in the quarter, largely for severance packages.
Chief Executive Nobuyuki Idei plans to lower costs by cutting 20,000 jobs over three years, closing television plants and merging Sony's music unit with that of Bertelsmann AG, forming the second- largest record company. The earnings contraction reflected rising competition in its game business from Microsoft Corp. and in consumer electronics from Samsung Electronics Co.
``There was a feeling that Sony was going to give us a positive surprise in the third quarter but these are not good numbers,'' said Scott McGlashan, who manages $125 million as chairman of Jade Absolute Fund Managers in London. ``The company is still struggling.''
The Tokyo-based company raised its full-year net income forecast by 10 percent to 55 billion yen in part because of better-than- expected games software sales. The third-quarter profit result was more than the 85 billion yen median estimate of six analysts surveyed by Bloomberg News.
Sony shares, which have risen 18 percent in the last month, fell 10 yen, or 0.2 percent, to 4,330 yen today. The company released earnings after the close of equity markets in Tokyo.
Electronics Charge
Operating profit at the company's main electronics unit fell 39 percent in the quarter. Restructuring charges for the unit totaled 46.3 billion yen, mainly related to severance expenses as part of the company's reorganization. Sony's third-quarter total restructuring charges were 53.6 billion yen, the company said.
Sony said in October it will cut 13 percent of its global workforce in three years as it targets annual savings of 330 billion yen by the year ending March 31, 2007.
The company left unchanged its full-year operating profit, or sales minus the cost of goods sold and selling, general and administrative expenses.
Third-quarter sales for all units rose 0.7 percent to a record 2.32 trillion yen from 2.31 trillion yen, the company said in a PRNewswire release. Sales of new flat-panel televisions, DVD recorders, digital still cameras and video cameras all rose.
DVD sales for Sony movies such as ``Bad Boys II'', starring Will Smith, were no match for last year's blockbuster hits such as ``Men in Black II'' and ``Spider-Man.''
Sony yesterday drew six Oscar nominations from the Academy of Motion Picture Arts and Sciences this year, for films including ``Something's Gotta Give'' and ``The Triplets of Belleville.''
That compares with Warner Bros. parent Time Warner Inc's 23 nominations and News Corp., owner of 20th Century Fox, which gained 14.
The sequel to ``Spider-Man'' is expected in theaters this summer, said Gerald Cavanagh, Tokyo-based Sony spokesman.
Last Updated: January 28, 2004 02:54 EST
Sony 3rd-Qtr Profit Falls 26%; Annual Forecast Raised (Update3)
Jan. 28 (Bloomberg) -- Sony Corp., the world's second-largest consumer-electronics maker, said third-quarter net income fell 26 percent as PlayStation 2 game console revenue shrank and it was unable to match year-earlier movie hits such as ``Spider-Man.''
Group net income fell to 92.6 billion yen ($874 million), or 93.14 yen a share, during the three months ended Dec. 31, from 125.5 billion yen, or 126.05 yen a share, a year earlier. It took charges of 53.6 billion yen in the quarter, largely for severance packages.
Chief Executive Nobuyuki Idei plans to lower costs by cutting 20,000 jobs over three years, closing television plants and merging Sony's music unit with that of Bertelsmann AG, forming the second- largest record company. The earnings contraction reflected rising competition in its game business from Microsoft Corp. and in consumer electronics from Samsung Electronics Co.
``There was a feeling that Sony was going to give us a positive surprise in the third quarter but these are not good numbers,'' said Scott McGlashan, who manages $125 million as chairman of Jade Absolute Fund Managers in London. ``The company is still struggling.''
The Tokyo-based company raised its full-year net income forecast by 10 percent to 55 billion yen in part because of better-than- expected games software sales. The third-quarter profit result was more than the 85 billion yen median estimate of six analysts surveyed by Bloomberg News.
Sony shares, which have risen 18 percent in the last month, fell 10 yen, or 0.2 percent, to 4,330 yen today. The company released earnings after the close of equity markets in Tokyo.
Electronics Charge
Operating profit at the company's main electronics unit fell 39 percent in the quarter. Restructuring charges for the unit totaled 46.3 billion yen, mainly related to severance expenses as part of the company's reorganization. Sony's third-quarter total restructuring charges were 53.6 billion yen, the company said.
Sony said in October it will cut 13 percent of its global workforce in three years as it targets annual savings of 330 billion yen by the year ending March 31, 2007.
The company left unchanged its full-year operating profit, or sales minus the cost of goods sold and selling, general and administrative expenses.
Third-quarter sales for all units rose 0.7 percent to a record 2.32 trillion yen from 2.31 trillion yen, the company said in a PRNewswire release. Sales of new flat-panel televisions, DVD recorders, digital still cameras and video cameras all rose.
DVD sales for Sony movies such as ``Bad Boys II'', starring Will Smith, were no match for last year's blockbuster hits such as ``Men in Black II'' and ``Spider-Man.''
Sony yesterday drew six Oscar nominations from the Academy of Motion Picture Arts and Sciences this year, for films including ``Something's Gotta Give'' and ``The Triplets of Belleville.''
That compares with Warner Bros. parent Time Warner Inc's 23 nominations and News Corp., owner of 20th Century Fox, which gained 14.
The sequel to ``Spider-Man'' is expected in theaters this summer, said Gerald Cavanagh, Tokyo-based Sony spokesman.
Last Updated: January 28, 2004 02:54 EST
Deepak said:
I don't think so, and not to brag, but i know some more about economics than you do...
They are going to lower the price shortly though.
Depends on what you mean by "mistake". They outsold the competition by a huge margin again, and sold huge numbers. With the high price point, that means they made huge profits. And seeing as games sales were up, I'd say they were succesful and made the right decision.Deepak said:Compare both bolded lines....BTW the entire gaming industry has slowed down last year 2003, and also I think they made a mistake by not reducing the price of PS2.
Of course, had Sony lowered the PS2 price, they would have sold more units, but at the expense of lower profits...
Selling lots of units is good for bragging rights on message boards, earning huge profits if good for business. I don't think there is any question which is more important to Sony, seeing as they would have slaughtered the competition in either case!
And remember, the price cut will come at some point. Really, sony have extended the PS2 lifetime. So I definitely don't think they made a mistake. Far from it.
Lazy,
Yeah, I'm sure shareholders are totally disappointed in Sony only having sold like 65 million PS2s...
Yeah, I'm sure shareholders are totally disappointed in Sony only having sold like 65 million PS2s...
Guden Oden:
Share value provides capital for a company and is supposed to reflect what a company is on track to sell; a reason the share price was as high as it was had a lot to do with the company's guidance. If sales fall short, it means the share price was overvalued, and the correction is going to cost some people some money.
If Sony had projected more, then yes they would be.
Share value provides capital for a company and is supposed to reflect what a company is on track to sell; a reason the share price was as high as it was had a lot to do with the company's guidance. If sales fall short, it means the share price was overvalued, and the correction is going to cost some people some money.
