updated 07:15 am EDT, Thu August 2, 2012
Sony revises operating profit downwards on weakened demand
Sony has posted a $312 million loss for Q1 (pdf) on sales of $19.2 billion for the months of April to June. Its operating profit fell 77 percent to just $80 million, dramatically worse than a forecast 36 percent drop in profits from the same time last year. One-off restructuring costs, including the transition of Sony Ericsson to Sony Mobile, as well as continued losses from its TV division and weaker that expected demand for its PlayStation lineup ensure Sony suffered yet another loss.
More worryingly for Sony, it has slashed its forecasts for the full financial year. It still expects to ship 16 million PS3s, although expects to sell only 12 million PSPs and PS Vitas, down from a previously forecast 16 million sales. It also expects to sell only 15 million TVs, down from its earlier prediction of 17.5 million sales. With exchange rate movements further hurting the company, it revised its expected operating profit for the full financial down to $1.66 billion from $2.29 billion.
Adding to Sony's woes is the debt crisis in Europe, which is factored in to revised sales forecasts. Unlike some other Japanese companies, Sony's European sales typically account for around 20 percent of its overall business, ensuring that any weakness in demand will be more keenly felt. While it will take some time for Sony CEO Kaz Hirai's 'One Sony' strategy to kick in that is focusing on driving growth in mobile devices. [via Reuters]