Sony hit with first annual loss in 14 years
updated 01:50 pm EDT, Thu May 14, 2009
Sony records rare loss
Sony today reported its first annual loss in some 14 years, according to the New York Times. During its most recent fiscal year, the company is said to have lost 98.9 billion yen; for the fiscal year ending in March 2010, the company is expecting to record a net loss of 120 billion yen, or $1.26 billion US. The company is only expected to avoid a 150 billion yen loss in part because of newly-favorable Japanese taxes.
The downfall is being blamed on a worldwide decline in sales, including within Japan itself. Complicating matters is a strong exchange rate, which while beneficial to imports for Japan, has diminished the worth of Sony's foreign revenue and increased domestic production costs. Sales in the 2009 fiscal year dropped 12.9 percent from the year prior.
The company is taking dramatic measures to restore profitability, including a new plan which will see three Japanese plants close. Sony has already chosen to freeze the wages of Japanese workers, also cutting bonuses by as much as 53 percent or more.
