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Thursday 06 February, 2014

Sony Corp

Consolidated Financial Results for the Third Qu...

Consolidated Financial Results for the Third Quarter Ended December 31, 2013

Sony Corporation

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

No. 14-018E
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*
Sales and operating revenue

¥

1,948

.0

   

¥

2,412

.8

   

 

+23

.9

%     $ 22,979
Operating income

 

46

.4

 

90

.3

 

+94

.6

860
Income before income taxes

 

29

.4

 

89

.8

 

+205

.0

855
Net income (loss) attributable to Sony Corporation’s stockholders

 

(10

.8)

 

27

.0

 

 

-

257
Net income (loss) attributable to Sony Corporation’s stockholders per share of common stock:

 

 

 

- 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 of yen                
 

1 U.S. dollar

¥

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 2013.

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.

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

http://www.sony.net/SonyInfo/IR/financial/fr/13q3_sony.pdf


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