Sony Corp reported a ¥98.9 billion (US$1 billion) loss for the fiscal year ended March — its first annual net loss in 14 years — and projected more losses this year amid a serious slump in the global electronics market.
Sony also said yesterday it was closing three plants in Japan to help turn its business around.
Hit by dropping sales and a strong yen, Sony lost ¥165 billion in the January-to-March quarter, compared with a ¥29 billion profit for the same period the previous year.
PHOTO: REUTERS
The Japanese electronics and entertainment company said no quick recovery was in sight, projecting a ¥120 billion (US$1.2 billion) loss for the fiscal year through March 2010.
The results are a reversal from the ¥369.4 billion profit Sony recorded a year earlier. Sales for the fiscal year through March slid 12.9 percent to ¥7.73 trillion, it said.
Sony, which makes Bravia flat-panel TVs and Cyber-shot digital cameras, is closing three plants in Japan by the end of December — one for handsets, another for video recorder parts and another for systems used for smart cards. After they are shuttered, the number of Sony’s global plants will dwindle from 57 last year to 49.
By operations, Sony said it had an operating loss in its core electronics segment because of the slowing global economy, price competition and a strong yen, which offset profits from its liquid-crystal display TV division.
Sony also continued to lose money in its game segment, where its PlayStation 3 home console and PlayStation Portable have struggled against rival offerings from Nintendo Co, the Wii and DS, as well as in some markets against the Xbox 360 from Microsoft Corp.
The company sold 10.06 million PlayStation 3 machines for the fiscal year through March, up 10 percent from the previous year. It also sold more PlayStation Portable machines, at 14.1 million during the fiscal year, up slightly from 13.8 million.
In its movies division, home entertainment sales declined despite stronger motion picture releases, including Hancock, Sony said.
Analysts say Sony chief executive Howard Stringer, who decided to centralize power earlier this year, has yet to give details of a turnaround plan, including strategies and products.
Stringer has promoted four relatively young executives into his managerial team, representing Sony’s gaming and electronics sectors.
Sony also faces a host of rivals that make similar products, often at cheaper prices, such as Samsung Electronics Co of South Korea, as well as manufacturers from Taiwan, China and other nations, such as Acer Inc (宏碁) and Lenovo Group Inc (聯想).
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College