REG-Sony Corporation Consolidated Financial Results for the Third Quarter Ended December 31, 2012<6758.T>

Thu Feb 7, 2013 6:04am EST

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TOKYO--(Business Wire)--


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

No. 13-018E
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 share amounts)                                
                                                Third quarter ended December 31                                                                      
                                                2011                        2012                        Change in yen              2012*             
 Sales and operating revenue                    ¥1,822.9                    ¥1,948.0                    +6.9     %                 $22,391           
 Operating income (loss)                        (91.7     )                 46.4                        -                          534               
 Income (loss) before income taxes              (105.9    )                 29.4                        -                          338               
 Net loss attributable to Sony Corporation`s    (159.0    )                 (10.8     )                 -                          (124     )        
  stockholders                                                                                                                                       
 Net loss attributable to Sony Corporation`s                                                                                                         
  stockholders per share of common stock:                                                                                                            
 - 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 Sony`s
headquarters. 

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
fiscal year. 

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
losses. 

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:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf

Sony Corporation 

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