Sony Posts £1.3bn Net Loss For Q3

Sony has just posted the financial results for the third quarter of its 2011 financial year and for incumbent CEO and President Kaz Hirai the news is not good.

Sony has posted an operating loss of $1.2 billion (£760 million) and net loss of $2bn (£1.3bn) on revenue of $23.37bn (£14.7bn). This revenue figure is 17.4 per cent down on the same period last year.

Sony placed the blame for the poor figures on a number of factors including “the impact of the floods in Thailand, deterioration in market conditions in developed countries, and unfavorable foreign exchange rates.” These results will be all the more disappointing because the quarter included the normally lucrative Christmas period.

Sony Q3 results

While results were disappointing across all of Sony’s divisions it was its TV division which fared the worst, with the company now expecting the division to make a loss of somewhere in the region of £1.8bn for the current fiscal year.

In its forecast for the year as a whole, which ends on 31 March, Sony said it was heading for a larger-than-expected loss, predicting an annual loss of somewhere near £1.8bn – almost identical to the loss from its TV division.

While Sony kept its forecast for annual sales of 20 million LCD TVs, it reduced the number of digital cameras and PlayStation 3 consoles it expected to sell.

Sony Q3 results

Looking further ahead, Sony’s Chief Financial Officer Masaru Kato said Sony aims to make an operating profit of about 200 billion yen, halving its TV losses and operating at a 5 per cent margin.

Sony is facing its fourth straight annual loss and following the end of the 2011 fiscal year, it will be Kaz Hirai who will be facing the mammoth task of turning around the ailing company.

If he is to be successful, Sony will need to get back to making innovative products like the Walkman and PlayStation, which made the company such a big player in the consumer technology world in the 1980s and 1990s.

Source: Sony and Reuters

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