REG-Sony Corporation 2nd Quarter Results

http://www.businesswire.com/news/home/20091030005259/en

TOKYO--(Business Wire)--

Sony Corporation
1-7-1 Konan, Minato-ku
Tokyo 108-0075 Japan

No: 09-052E
3:00 P.M. JST, October 30, 2009

Consolidated Financial Results for the Second Quarter Ended September 30, 2009

Tokyo, October 30, 2009 -- Sony Corporation today announced its consolidated
results for the second quarter ended September 30, 2009 (July 1, 2009 to
September 30, 2009).

* Excluding equity in net income (loss) of affiliated companies and
restructuring charges, operating income was positive and higher compared to the
prior year`s second quarter.
* Sony`s operating profitability forecast for the fiscal year has been revised
upward, primarily reflecting second quarter results that exceeded expectations.
* Structural transformation initiatives are proceeding as planned.

(Billions of yen, millions of U.S. dollars, except per share amounts)
Second quarter ended September 30
2008 2009 Change in yen 2009*
Sales and operating revenue ¥2,072.3 ¥1,661.2 -19.8 % $ 18,458
Operating income (loss) 11.0 (32.6 ) - (362 )
Income (loss) before income taxes 7.3 (17.0 ) - (189 )
Net income (loss) attributable to
Sony Corporation`s stockholders ** 20.8 (26.3 ) - (292 )
Net income (loss) attributable to
Sony Corporation`s stockholders
per share of common stock:
- Basic ¥20.74 ¥(26.22 ) - $(0.29 )
- Diluted 19.83 (26.22 ) - (0.29 )

Unless otherwise specified, all amounts are presented on the basis of Generally
Accepted Accounting Principles in the U.S. ("U.S. GAAP").

Supplemental Information
In addition to operating income (loss), Sony`s management also evaluates Sony`s
performance using non-U.S. GAAP adjusted operating income (loss). Operating
income (loss), as adjusted, which excludes equity in net income (loss) of
affiliated companies and restructuring charges, is not a presentation in
accordance with U.S. GAAP, and is presented to enhance investors` understanding
of Sony`s operating income (loss) by providing an alternative measure that may
be useful to understand Sony`s historical and prospective operating performance.
Sony`s management uses this measure to review operating trends, perform
analytical comparisons, and assess whether its structural transformation
initiatives are achieving its objectives.

(Billions of yen, millions of U.S. dollars)
Second quarter ended September 30
2008 2009 Change in yen 2009
Operating income (loss) ¥11.0 ¥(32.6 ) - % $(362 )
Less: Equity in net income (loss) of affiliated companies 1.1 (12.3 ) - (137 )
Add: Restructuring charges recorded within operating expenses 0.9 32.8 +3,568.9 364
Operating income, as adjusted ¥10.8 ¥12.5 +16.0 % $139

This supplemental non-U.S. GAAP measure should be considered in addition to, not
as a substitute for, Sony`s operating income (loss) in accordance with U.S.
GAAP.

* U.S. dollar amounts have been translated from yen, for convenience only, at
the rate of ¥90=U.S. $1, the approximate Tokyo foreign exchange market rate as
of September 30, 2009.

**Net income (loss) attributable to Sony Corporation`s stockholders is
equivalent to net income (loss) in the consolidated financial statements issued
for the fiscal years ended March 31, 2009 and prior.Modification of the
presentation format of the consolidated statement of income is required by new
accounting guidance for noncontrolling interests in consolidated financial
statements, which Sony adopted effective April 1, 2009.

Consolidated Results for the Second Quarter Ended September 30, 2009

Sales and operating revenue ("sales") decreased 19.8% compared to the same
quarter of the previous fiscal year ("year-on-year")due to factors including the
slowdown of the global economy and the appreciation of the yen.

During the quarter ended September 30, 2009, the average rate of the yen was
¥92.7 against the U.S. dollar and ¥132.2 against the euro, which was 15.1% and
21.3% higher respectively, than for the same quarter in the previous fiscal
year. On a local currency basis, sales decreased 9% year-on-year. For references
to sales on a local currency basis, see Note on page 8.

An operating loss of ¥32.6 billion ($362 million) was recorded, a deterioration
of ¥43.6 billion year-on-year. Operating profitability deteriorated mainly due
to an approximately ¥77 billion impact from the appreciation of the yen, a ¥31.9
billion increase in restructuring charges, and a ¥13.5 billion impact from
deterioration in results at equity affiliates, principally Sony Ericsson Mobile
Communications AB ("Sony Ericsson"). Sony has undertaken efforts to reduce the
cost of sales and selling, general and administrative expenses in response to a
decline in sales. Operating income increased by 16% to ¥12.5 billion on an as
adjusted basis, excluding equity in net income (loss) of affiliated companies
and restructuring charges.

Equity in net loss of affiliated companies, recorded within operating loss, was
¥12.3 billion ($137 million), a deterioration of ¥13.5 billion year-on-year.
Sony recorded equity in net loss for Sony Ericsson of ¥10.9 billion ($121
million), a deterioration of ¥9.3 billion year-on-year, mainly due to a decline
in sales and unfavorable foreign currency exchange rates. Sony also recorded
equity in net loss of ¥2.2 billion ($25 million) for S-LCD Corporation
("S-LCD"), a joint venture with Samsung Electronics Co., Ltd., a deterioration
of ¥4.8 billion year-on-year.

In the same quarter of the prior fiscal year, Sony recorded equity in net loss
of ¥3.1 billion for its 50% share of SONY BMG MUSIC ENTERTAINMENT ("SONY BMG"),
which was included in the Music segment. Sony acquired the balance of SONY BMG
on October 1, 2008, fully consolidating its results from that date. SONY BMG
changed its name to Sony Music Entertainment ("SME") on January 1, 2009.

The net effect of other income and expenses improved ¥19.3 billion primarily due
to the recording of a net foreign exchange gain in the second quarter versus a
net foreign exchange loss recorded in the same quarter of the previous fiscal
year.

A loss before income taxes of ¥17.0 billion ($189 million) was recorded,
compared to income of ¥7.3 billion in the same quarter of the previous fiscal
year.

Income taxes: Sony recorded an income tax benefit amounting to ¥1.7 billion ($19
million), resulting in an effective tax rate of 10%. The effective tax rate was
lower than the statutory tax rate of 41% primarily due to the effect of equity
in net loss of affiliated companies, the results of which are reported net of
income taxes.

Net loss attributable to Sony Corporation`s stockholders of ¥26.3 billion ($292
million) was recorded in this quarter compared to ¥20.8 billion net income in
the same quarter of the previous fiscal year.

To view the full announcement, paste the following link into your web browser:

http://www.sony.net/SonyInfo/IR/financial/fr/09q2_sony.pdf.

Investor Relations Contacts:

Tokyo New York London
Gen Tsuchikawa Sam Levenson Shinji Tomita
+81-(0)3-6748-2180 +1-212-833-6722 +44-(0)20-7426-8696

Home Page: http://www.sony.net/IR/

Presentation Slides:
http://www.sony.net/SonyInfo/IR/financial/fr/09q2_sonypre.pdf

Sony Corporation

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