On July 27, Sony (NYSE:SNE) released second-quarter earnings for the period ended June 30. Numbers below are Japanese yen year-over-year comparisons.
- Local currency sales grew 11.2% year over year, and both operating and net income turned into profits from year-ago losses.
- Margins improved considerably and passed into the black across the board. While margins remain slim, it's an encouraging sign.
- Free cash flow continues to be a money pit for Sony, and inventory is building up for the upcoming PlayStation 3 launch. Positive margins are nice, but positive cash flow would be even better.
(Figures in billions of yen, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
-- |
Y1,744 |
Y1,568 |
11.2% |
|
Net profit |
Y15.5 |
Y32.3 |
(Y7.3) |
NM |
|
EPS |
Y15.48 |
Y32.25 |
(Y8.68) |
NM |
|
Diluted shares |
Y14.76 |
Y30.75 |
(Y8.68) |
NM |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross margin |
30.5% |
30.04% |
0.46% |
|
Operating margin |
1.55% |
(0.42%) |
1.97% |
|
Net margin |
1.85% |
(0.46%) |
2.31% |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST invest. |
Y1,022 |
Y988 |
3.44% |
|
Accounts receivable |
Y986 |
Y939 |
5.01% |
|
Inventory |
Y948 |
Y702 |
35% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
Y762 |
Y666 |
14.41% |
|
Long-Term Debt |
Y868 |
Y678 |
28.02% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
(Y98.0) |
(Y88.6) |
(10.61%) |
|
Capital expenditures |
Y125.7 |
Y106.8 |
17.7% |
|
Free cash flow |
(Y223.7) |
(Y195.4) |
(14.48%) |
Find out why Fools always follow the money.
Related companies:
- Canon (NYSE:CAJ)
- Microsoft (NASDAQ:MSFT)
- Koninklijke Philips (NYSE:PHG)
- NEC (NASDAQ:NIPNY)
- Matsushita Electric Industrial (NYSE:MC)
- Viacom (NYSE:VIA)
Related Foolishness:
- Foolish Fundamentals: Inventory
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: Cash Conversion Cycle
- Foolish Fundamentals: Enterprise Value
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