updated 10:50 am EDT, Wed May 16, 2007
Sony bleeds into 1Q 2007
Financial problems continue to plague Sony into 2007, says the Associated Press. Already hurting from 2006 issues like development delays and a massive battery recall, the company reports that between January and March, it lost 67.6 billion yen, or $563 million US. This was even worse than the 66.5 billion yen lost in the same quarter a year prior. Sony attributes this mainly to the Playstation 3, which has not sold as well as expected, and in fact costs the company more to produce -- most income is generated through games.
In spite of its difficulties, Sony expects to double its profits by the end of the year, due to strong early indications. Quarterly sales actually rose by almost 13 percent to 2.01 trillion yen ($16.8 billion), and profit for the last fiscal year amounted to 126.3 billion yen ($1.1 billion). This can be explained in part by healthy sales of Bravia LCDs, Vaio computers and Handycam camcorders; the rest however is likely the result of new CEO Howard Stringer, who has stopped unprofitable businesses, fired workers, and shut down plants. The company is even selling its former Tokyo headquarters, which will recoup 59 billion yen ($492 million) by next March.