Sony Forecasting $1.2 Billion In Fourth Consecutive Annual Loss
Sony Corporation (NYSE:SNE) has forecasted their fourth consecutive annual loss and has slashed their TV sales targets due to the yen reaching a postwar high and due to floods in Thailand, which caused a cut in production. The company is predicting a 90 billion-yen ($1.2 billion) annual loss, compared to an earlier forecast for a 60 billion-yen of full-year profit.
For the quarter ended September 30, Sony reported an unexpected loss of 27 billion yen. Sony also lowered their TV sales targets to 20 million units from 22 million units. Thailand is having their worst floods in almost 70 years, which will cause a delay in the introduction of the NEX and Alpha cameras.
Sony is taking a 50 billion yen charge to streamline their TV operations, which is expected to lose 175 billion yen this year. Sony is writing down the value of some facilities, which will reduce the number of TV models and cut expenses as marketing divisions. Sony is hoping to make this unit profitable by March 2014. Sony has also organized the TV division into three groups due to a loss of about 480 billion yen in the past 7 fiscal years.
Sony has also cut their annual compact-camera sales projection to 23 million units from 24 million and lowered the estimate for Blu-ray disco players to 7.9 million from 9.4 million.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry