Sony has posted a ¥138bn ($ 1.35bn) quarterly loss – owing to costs from exiting its personal computer business – and has forecast more red ink as it struggles to execute a long-promised turnaround.
The Tokyo-based electronics firm also reported on Wednesday a loss of ¥128.4bn for the fiscal year to end of March, more than three times the ¥41.5bn loss in the previous year. Sony forecasts a ¥50bn loss for the year ending March 2015.
Earlier this month, the firm said it would report a bigger annual loss than earlier forecast because of costs related to selling its Vaio PC business. It was also hit by a drop in the value of its overseas disc manufacturing business and its battery business.
The Playstation 4 maker has lost much of the cachet that stemmed from once being at the cutting edge of consumer electronics. In recent years it has fallen behind in digital recorders and flat-panel TVs while also facing competition from a host of new rivals that can make appliances at lower costs.
In gadgetry, it is Apple and Samsung that have dazzled with their innovations, not Sony.
In February, Sony announced it would withdraw from the PC business, despite the popularity of the Vaio brand among some Sony fans, especially in Japan.
The deal to sell Vaio to a Japanese conglomerate was signed this month. The transaction is expected to be completed in July.
The firm’s losses are continuing despite an improvement in sales, which rose by 14% to ¥7.7tn for the fiscal year.
Sony is also struggling despite the perk that Japanese exporters such as it get from a favourable exchange rate, which boosts the value of overseas earnings. The dollar has strengthened over the past year to about ¥102 from ¥80.
Sony said it trimmed losses at its TV operations, which have been struggling for nearly a decade, a big problem for a company that had built its reputation on the fantastic image quality of its televisions.
Sony is splitting off its money-losing TV division to run it as a wholly owned subsidiary.
Source: The Guardian