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).
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