Printed from http://www.electronista.com

Sony posts $312 million loss for Q1, slashes forecasts

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]




By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

Prong PWR Case

Ultimately there's one thing we all want from smartphone accessories; we want options. When it comes to keeping our iPhone charged, we ...

iHome iBT74 Color Changing Bluetooth Speaker

There's no reason why your tech can't look good while doing what it was designed to do. That's the reason that sports cars look good a ...

Logitech Gaming Daedalus Prime Mouse

Logitech Gaming continues to expand upon its peripherals line, with each one looking to fit neatly into a breadth of gaming needs. Bui ...

Advertisement

toggle

Most Commented