In order to strengthen SEMC's capital structure and support business expansion, Sony and Ericsson have decided that during the quarter ending March 31, 2003, each company will contribute Eur 150 million to SEMC. This capital injection represents the continuing commitment of Sony and Ericsson to the joint venture.
SEMC estimates that approximately 115 million units were sold (sell-through) in the total market during the fourth quarter and approximately 395 million during the full year of 2002, compared with approximately 390 million in 2001. SEMC forecasts that total market sales will be approximately 435 million units during 2003, representing year-on-year growth of about 10%.
Sony and Ericsson today also announced SEMC's fourth quarter results ended December 31, 2002. Units shipped in the quarter reached 7.1 million, which is 4% higher year-on-year and 42% higher compared to the third quarter. Net sales for the quarter were Eur 1,235 million, representing year-on-year and sequential increases of 18% and 42%, respectively. Income before taxes in the quarter was Eur -77 million and net income was Eur -69 million, which represent year-on-year improvements of Eur 75 million and Eur 70 million, respectively.
Note: As a 50:50 joint venture, 50% of SEMC's results are reported by Sony and Ericsson as a joint venture accounted for under the equity method.