Revised financials paint a grim picture.
We’ve heard the rumours of Sony recording a loss this quarter, and it looks like they’re going to prove true, based on Sony’s just-published revised predictions. Sony now expects net loss of ¥150 billion (~£1.22 billion), a definite change from the previous estimate (from October last year) of ¥150 billion profit and last year’s actual net profit of ¥369 billion (£3 billion).
In Sony’s words: “Consolidated sales and operating income for the second half of the fiscal year ending March 31, 2009 are expected to be significantly lower than the October forecast, primarily due to a deterioration in the business environment as a result of the global economic slowdown, the continued appreciation of the yen, the impact from the decline in the Japanese stock market and an increase in expected restructuring charges.”
In other words, no-one is buying Sony’s products, the Yen is getting stronger (making Sony’s over-seas income worth less to the company) and Sony is spending money on restructuring to make the business more cost-effective in the future.
Sony Investor Relations.