Japanese electronics giant Sony on Thursday posted a record full-year loss of $5.7 billion,
Sony’s 456.66 billion yen ($5.7 billion) loss for the year to March, its fourth consecutive year in the red, came after it said last month it would cut about 10,000 jobs and spend nearly $1 billion on an overhaul that its new chief executive Kazuo Hirai described as “urgent”.
Sony, which is struggling to stem losses at its television division, on Thursday said a strong yen and natural disasters were among the main reasons for its disastrous earnings.
The natural disasters hammered Japanese manufacturers while Sony has also blamed tough competition and falling prices, particularly in the television segment, for its struggles.
“The last year was horrible,” Hiroshi Sakai, analyst at SMBC Friend Securities in Tokyo, told AFP on Thursday.
“Some complex, bad conditions hit the company, including a soaring yen... But there is a question as to whether Sony should keep the TV division as part of its business.”
Sony’s reforms, in addition to the jobs cuts, also include expanding its PlayStation and online games business, and pushing further into emerging markets and new sectors, such as medical equipment and life sciences.
“Now is the time for Sony to change,” Hirai, who replaced Welsh-born US chief executive Howard Stringer earlier this year, said in April.
The firm has also blamed tough competition and falling prices, particularly in the television segment, for its struggles.
But it said it was on course to post a net profit of 30 billion yen in the current fiscal year, with operating profit of 180 billion yen on sales of 7.4 trillion yen.
At a press conference in Tokyo on Thursday, Sony's Chief Financial Officer Masaru Kato said: “We consider fiscal year 2012 to be the very important year to rehabilitate the electronics division.”
Sources:
Yahoo! News
The China Post
Inquirer Business
khaleejtimes
Sony’s 456.66 billion yen ($5.7 billion) loss for the year to March, its fourth consecutive year in the red, came after it said last month it would cut about 10,000 jobs and spend nearly $1 billion on an overhaul that its new chief executive Kazuo Hirai described as “urgent”.
Sony, which is struggling to stem losses at its television division, on Thursday said a strong yen and natural disasters were among the main reasons for its disastrous earnings.
The natural disasters hammered Japanese manufacturers while Sony has also blamed tough competition and falling prices, particularly in the television segment, for its struggles.
“The last year was horrible,” Hiroshi Sakai, analyst at SMBC Friend Securities in Tokyo, told AFP on Thursday.
“Some complex, bad conditions hit the company, including a soaring yen... But there is a question as to whether Sony should keep the TV division as part of its business.”
Sony’s reforms, in addition to the jobs cuts, also include expanding its PlayStation and online games business, and pushing further into emerging markets and new sectors, such as medical equipment and life sciences.
“Now is the time for Sony to change,” Hirai, who replaced Welsh-born US chief executive Howard Stringer earlier this year, said in April.
The firm has also blamed tough competition and falling prices, particularly in the television segment, for its struggles.
But it said it was on course to post a net profit of 30 billion yen in the current fiscal year, with operating profit of 180 billion yen on sales of 7.4 trillion yen.
At a press conference in Tokyo on Thursday, Sony's Chief Financial Officer Masaru Kato said: “We consider fiscal year 2012 to be the very important year to rehabilitate the electronics division.”
Sources:
Yahoo! News
The China Post
Inquirer Business
khaleejtimes
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