Sony Reports $1.2 Billion Quarterly Operating Loss

TOKYO, Feb 2 (Reuters) - Sony Corp fell into a 91.7 billion yen ($1.2 billion) operating loss in October-December, a disappointing result for the usually lucrative quarter that was worse than analysts' estimates as it battled a strong yen, Thai floods and a dull economy.

The company also forecast a full-year operating loss, hobbled by chronic losses in its TV operations despite restructuring efforts as it struggles to compete with aggressive South Korean rivals such as Samsung Electronics.

Sony's operating loss for its third quarter compared with an 8.8 billion yen average profit forecast of six analysts polled by Thomson Reuters I/B/E/S.

For the full year to March, the company forecast an operating loss of 95 billion yen, compared with the analyst consensus forecast of an 8.2 billion yen profit.

Sony announced on Wednesday that Vice President Kazuo Hirai, the designated heir apparent to CEO Howard Stringer, would take the president and CEO posts on April 1 in a long-awaited management succession.

Several Japanese technology companies, including Nintendo and Sharp Corp, have already surprised investors this earnings season with worse-than-expected earnings forecasts for the full financial year.

Panasonic Corp, also saddled with an ailing TV business and hit by the strong yen, will report its earnings on Friday.

The earnings announcement came after the end of trade on Thursday. Sony's shares have lost more than half their value over the past year, compared with a 15 percent drop in Tokyo's benchmark Nikkei average.

Comments

[nkelkar]

01:38 AM on 02/15/2012

Its Obvious SONY will go into loss, I have expected it as SONY is not going with new technique. They are following their own Rules in all Models. For Example Samsung LED TV Supports major Audio/Vide­o Formats Where as Sony LED TV supports Selected formats. So in Shop/Malls naturally all will buy Samsung Products. 'SONY' Don't think you will be always on Top & people will follow you. Those days are gone...Be realistic & If you want to survive Keep your products Updated with latest developmen­t...So you will keep maintainin­g your Name in the Market....­All The Best

[Post31]

12:36 PM on 02/02/2012

It might be because your software is usually garbage and all you really do is make people mad with your tvs that only take Sony wires or your PS3s that you swore to everyone that you would leave open then began locking down year by year, always taking away cool options from it. Or how about your psp go the most outrageous attempt at a money grab I have seen in my lifetime. It actually was worst than its predecessor and yet more expensive.

[Maxedaddy]

12:17 PM on 02/02/2012

The market has been flooded with quality products at very low costs. While sony has refused to bring down prices and try to nickle and dime you at every corner by making separate devices for every little thing instead of Incorporating everything into one or fewer gadgets. They're business model is going down and we all have gotten away from they're over priced gadgets! The public has spoken!

[ESJ247]

11:59 AM on 02/02/2012

Lower your prices and people will buy your products.

[garymc8]

10:54 AM on 02/02/2012

25 years ago you could not buy a better product than sony. Man that changed big time about 18-19 years ago. I will not own anything sony, any more. They went to cheap garbage over night. plastic tape transports, plastic parts break in a year. ALL IT HAS BEEN FOR A DECADE IS OVERPRICED JUNK

[XM202]

12:18 PM on 02/02/2012

This sums it up. The only thing Sony did right was Playstation 3 (although they cut its specs just before production) and Blu-ray.

But... for the most part, Sony's products in every catagory has declined and comes off as poorly made.

Samsung on the other hand has become an excellent company in recent years

[savman]

10:43 AM on 02/02/2012

The next great wave of recessionary defaults is under way. Dump your stocks and get into commodities like precious metals.

[oilfield]

11:33 AM on 02/02/2012

oil....

[savman]

11:37 AM on 02/03/2012

unfortunately a cartel controls price (opec) so oil will fall as demand falls so don't rely on oil to save your bacon. Oil production is declining, so in the future yes, oil, but short term? meh.

[FiredUpRTG]

10:31 AM on 02/02/2012

Don't take all the money home; pour it into R&D and hiring creative thinkers. Don't get comfortable making a great product unless it's the only one of its type and its need will never diminish.

[Retromancer]

10:27 AM on 02/02/2012

I'll always have a soft spot for Sony. My folks bought me a Sony stereo in the early 80s and it worked flawlessly for more than 10 years. The Age of CDs was the only reason I retired it. There's value in trusting a brand, and I still trust Sony until they prove me wrong.

[shirlyujest]

10:55 AM on 02/02/2012

I'm typing this on my Sony Vaio laptop which I just love. The first personal computer I ever had was a Sony...got it in '95 or '96 and I'm betting it's still working out there somewhere. Sounds like Sony has some inside work to do. The article didn't mention it, but I'm wondering if the eq and tsunami were factors as well.

[oilfield]

11:36 AM on 02/02/2012

i found the camera quality in recent years has gone down since they make them in china....i have plenty of older digitals that still work including the old floppy ones....but some of our newer ones broke after a year.

[Tony Duhon]

10:24 AM on 02/02/2012

Sony is falling (like many other 'older' big giants) because they, in pursuit of more and faster dollars, followed the same gluttonous consumer desires as the other companies that are now faltering.

Had Sony, Kodak, et. al. stayed with what they know and pioneered amazing innovations on those before all of the 'underlings' came around, they might have been in much better shape now. In the long term scheme of things, the consumer does not always know best.

[RedneckDem]

10:54 AM on 02/02/2012

If you noticed in the article they mentioned a strong yen. Sharp, for example, makes all components for its TV biz in country. When the yen is strong it makes its exports more expensive and its import less expensive (say, against the Chinese currenncy).

The same phenomenon occures in the US, where the dollar is strong versus the yen. The difference is about 20%, which is huge in importing and exporting.

[RedneckDem]

10:55 AM on 02/02/2012

Sorry, I meant to say "dollar versus the Chinese yuan" in second paragraph.

[blueken60]

10:19 AM on 02/02/2012

I know a company that got millions of dollars from Sony to design a motherboard and chip that would turn your TV into a router, wireless access point, modem, telephone and computer. The great all in one device. After several months of development Sony found out Apple was doing the same thing. They pulled out, said keep the money, we can't compete with Apple. Now the Apple everything TV is in Alpha testing and is expected to come out at 10 times the cost of your average TV. When a company lacks the confidence to compete on the next big thing, their days are numbered. Sony, it could have been you that "put a dent in the universe", but you lost your chance. Now you will have to pay Apple for the liscence to manufacture the TVs of the future.

[FiredUpRTG]

10:28 AM on 02/02/2012

Wait long enough and the prices go down for the most innovative products — large flat screens cost half of what I paid for my 27" tube tv 25 years ago… which is still working perfectly…

[Revolver Ocelot]

09:48 AM on 02/02/2012

guessing the "walkman" era is over.

[JongyDepp]

09:53 AM on 02/02/2012

Sony let their publishing arm hobble innovation in the consumer electronics arm. Too worried about what a mass-storage MP3 player would do to their CD and DVD sales, they let Apple (and everyone else) beat them at their own game.

[JongyDepp]

09:46 AM on 02/02/2012

When the first iPod came out, it was the beginning of the end for Sony.

[CharliePoole]

09:45 AM on 02/02/2012

Sony, I have an idea. Just "make.believe" its 1.2 bill in profits.

[oilfield]

11:37 AM on 02/02/2012

maybe 2 sets of parenthesis?

[aphextwin07]

09:29 AM on 02/02/2012

not surprising, their prices are unrealistic in this economy.

[Jebbushnot]

08:47 AM on 02/02/2012

To Romney et al who says " In the private sector...you can't run on deficits....Sony has not made money in 5+ years...they operate on BORROWED MONEY....WAKE THE HELL UP FOX NEWS.