Sony To Post $1.1 Billion Loss: Reports
TOKYO — Sony will post a 100 billion yen ($1.1 billion) operating loss this fiscal year through March, its first since 1995, media reports said Tuesday.
The electronics giant has seen sales of its liquid crystal display screens and other products fall, and its bottom line has been hurt by the strong yen, which cuts profits on goods sold abroad, the Nikkei business newspaper and broadcaster NHK reported.
The losses are coming from the company's core electronics division, which has long been a steady source of profits, the reports said. The Nikkei said Sony's operating loss could balloon to as much as 200 billion yen ($2.2 billion).
A company spokeswoman declined to comment on the reports.
In October, the company revised its operating profit forecast to 200 billion, 57 percent lower than its earlier target of 470 billion yen.
Last month, Sony said it would implement major cost-cutting to ride out the current economic downturn, including slashing 4 percent of its work force, lowering spending and shutting plants.
Sony is particularly vulnerable to the strong yen, as about 80 percent of its sales come from overseas. The company had been counting on strong holiday sales in U.S. and Europe, but consumers have been spending less as the worldwide economy falters.
Other major Japanese exporters, such as Toyota and TDK, have also announced job cuts and spending cutbacks.
Sony's shares were down 8 percent at 2,020 yen in early market trade Tuesday. The benchmark Nikkei stock index was down 4.4 percent.
(This version CORRECTS Corrects year of last operating loss to 1995 from 1985)
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January 12, 2009 09:30 PM EST |
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