updated 04:11 am EDT, Thu November 1, 2012
Sony begins turning key businesses around as losses get smaller
Sony has reported a $198 million loss for its Q2 result, stemming the flow of major losses. Last year the company racked up a staggering $5.7 billion in debt as it struggled to restructure and refocus its businesses. The company posted the loss despite revenue of $20.6 billion, although this was a better result than for the same period last year where it took losses of $350 million.
TVs and home entertainment continued to make losses, although this was limited to $203 million in a segment where margins can be as little as 5 percent. Suprisingly, gaming sales fell 16 percent, reducing revenue in the segment to $1.9 billion while returning a modest profit of $29 millon. On a positive note, its chip division turned in a profit of $382 million after a series of losses, while its mobile division doubled its revenue to $3.9 billion but stiff competition meant that it still returned a loss of $29 million.
Looking forward, Sony will aim to trim its workforce by 10,000 globally as it seeks to become more streamlined and focus on what it considers are its core businesses. New CEO Kaz Hirai holds considerable status within Sony and the business world for turning Sony’s loss-making PlayStation division into a profitable enterprise. It also recently invested $625 million in Olympus’s medical imaging division where it aims to share 4K technology with Olympus while getting a slice of that company’s highly profitable business division.