Sony to post 4th straight loss due to ailing TV division

November 03, 2011

Sony Corp. said Nov. 2 it expects a group net loss of 90 billion yen ($1.15 billion) for the year ending in March, a fourth straight loss, due largely to mounting losses in TV operations.

In July, the company was forecasting 60 billion yen in profits.

Sony said the yen's sharp appreciation and flooding in Thailand will also bite into its earnings.

The company expects an operating loss of 175 billion yen in its TV division, the eighth consecutive loss, amid economic slowdowns in Europe and the United States.

The sales target for the year has been slashed to 20 million TV sets, down from 22 million in July and 27 million in May.

Sony expects 20 billion yen in operating profits, down 90 percent from its July projection, on consolidated sales of 6.5 trillion yen, down 9.7 percent.

Due to the strong yen, Sony revised the exchange rate it uses for planning business operations, which will reduce operating profits by 65 billion yen.

The company will also lose 25 billion yen in operating profits because factories for semiconductors and digital single-lens reflex cameras in Thailand have been flooded.

For the April-September period, Sony incurred a group net loss of 42.4 billion yen, compared with 56.8 billion yen in profits for the same period the previous year.

Its production facilities were damaged by the March 11 Great East Japan Earthquake.

Operating profits plunged 80.9 percent from a year earlier to 25.8 billion yen on sales of 3.07 trillion yen, down 9.6 percent.

  • 1
submit to reddit
Kazuo Hirai, left, executive deputy president of Sony Corp., at a news conference on Nov. 2 (Minako Yoshimoto)

Kazuo Hirai, left, executive deputy president of Sony Corp., at a news conference on Nov. 2 (Minako Yoshimoto)

Toggle
  • Kazuo Hirai, left, executive deputy president of Sony Corp., at a news conference on Nov. 2 (Minako Yoshimoto)

More AJW