Sony Corp. warned it would now swing a ¥110 billion (or $1 billion) annual net loss for this year until March 31, instead of the ¥30 billion postulated profit more than three months ago.
The Japanese electronics company, which has its credit rating placed to junk by Moody’s in January, also disclosed it would sell its Vaio PC unit, develop its television units, and chop 5,000 jobs. This restructuring is anticipated to be ¥90 billion in two years.
However, profits are also being jostled downwards by products that will remain in its line up, including its smartphones that have been bullish.
In its earnings report, Sony said the general sales in its mobile products and communications division are seen to be lower than the October prediction because of “a downward revision in the annual unit sales forecast of smartphones”.
But year after year, the company expects its sales and operating profits to escalate significantly.
Sony, with ¥43 billion net profits last year, garnered net earnings of ¥27 billion in the 3rd quarter, aligned with analyst estimates.
As slated, it showed off plans to sell its Vaio PC unit to Japan Industrial Partners, a private equity venture supported by Bain Capital and Mizuho Securities.
Sony has been struggling to turn around its computing and television businesses, which have been weighing on its profits, and has been reevaluating its game plan for the PC business, including if it would choose to keep it at all.
Sony once dominated the consumer electronics world, but has battled to come back to the heady days when its Walkman was all the rage. Its financial fortunes have reflected that decrement, and its market capitalization is now suppressed by the new giants like Apple and Samsung that have snatched a march on design and technology.
Hence a streak of profit warnings and rounds of restructuring that have bedeviled the company and its series of chief executives.
Three months ago, when it listed a ¥19.3 billion net loss (or $197 million) in the 2nd quarter, against postulation of a ¥14.8 billion profit.
Moody’s cautioned in January that Sony’s profitability is likely to be weak and volatile until the turn round of its television and PC businesses double up into better earnings. It trim Sony’s credit to junk at Ba1, one level down investment grade, from Baa3.
The material has been provided by InstaForex Company – www.instaforex.com
Sony Corp. warned it would now swing a ¥110 billion (or $1 billion) annual net loss for this year until March 31, instead of the ¥30 billion postulated profit more than three months ago.
The Japanese electronics company, which has its credit rating placed to junk by Moody’s in January, also disclosed it would sell its Vaio PC unit, develop its television units, and chop 5,000 jobs. This restructuring is anticipated to be ¥90 billion in two years.
However, profits are also being jostled downwards by products that will remain in its line up, including its smartphones that have been bullish.
In its earnings report, Sony said the general sales in its mobile products and communications division are seen to be lower than the October prediction because of “a downward revision in the annual unit sales forecast of smartphones”.
But year after year, the company expects its sales and operating profits to escalate significantly.
Sony, with ¥43 billion net profits last year, garnered net earnings of ¥27 billion in the 3rd quarter, aligned with analyst estimates.
As slated, it showed off plans to sell its Vaio PC unit to Japan Industrial Partners, a private equity venture supported by Bain Capital and Mizuho Securities.
Sony has been struggling to turn around its computing and television businesses, which have been weighing on its profits, and has been reevaluating its game plan for the PC business, including if it would choose to keep it at all.
Sony once dominated the consumer electronics world, but has battled to come back to the heady days when its Walkman was all the rage. Its financial fortunes have reflected that decrement, and its market capitalization is now suppressed by the new giants like Apple and Samsung that have snatched a march on design and technology.
Hence a streak of profit warnings and rounds of restructuring that have bedeviled the company and its series of chief executives.
Three months ago, when it listed a ¥19.3 billion net loss (or $197 million) in the 2nd quarter, against postulation of a ¥14.8 billion profit.
Moody’s cautioned in January that Sony’s profitability is likely to be weak and volatile until the turn round of its television and PC businesses double up into better earnings. It trim Sony’s credit to junk at Ba1, one level down investment grade, from Baa3.
The material has been provided by InstaForex Company – www.instaforex.com