Sony reports quarterly loss of US$316m, cuts earnings forecast

2 Aug 2012

Electronics and entertainment company Sony has reported a quarterly loss of 24.6bn yen (US$316m) compared with a 15.5bn yen (US$197m) loss in the 2011 April-June quarter and slashed its earnings forecast for the business year through March 2013 to a 20bn yen (US$256m) profit, down from 30bn yen projected in May.

The company cited uncertainty in foreign exchange rates and global demand.

Operating profit for the quarter sank 77pc to 6.28bn yen (US$80m) compared to the same period last year.

Sony, in the year ended 31 March, had posted an operating loss of 67bn yen (US$855m) and a record net loss of 455bn yen (US$5.8bn). Its June-quarter net loss amounted to 24.64bn yen (US$314m).

However, sales, notably sales of cameras, mobile phones and professional broadcasting products, rose 1.4pc to 1.52trn yen (US$19.4bn).

Sony has been struggling with a strong yen that wears away overseas earnings, and fewer sales of video game devices and liquid crystal display TVs.

In an effort to bring the company back to profitability, Sony in June announced the appointment of its former head of its games division Kazuo Hirai as president and chief executive officer.

In April, Sony confirmed it would cut 10,000 staff globally as part of a major restructuring of its business to become more competitive.

The job cuts came as part of a new business initiative called ‘One Sony’, to strengthen its core business, expand into emerging markets, realign its resources and boost its television business.

Tina Costanza was a journalist and sub-editor at Silicon Republic