Sony Announces Net Loss Of $194 Million
Sony Corporation has announced a second quarter net loss of 15.5 billion yen ($194 million). This is Sony’s seventh consecutive quarterly loss on falling demand since consumers are going after Apple and Samsung devices. Analysts were expecting a 15.6 billion yen average profit between an estimate from three companies.
Sony is cutting 10,000 jobs and they are selling their assets as CEO Kazuo Hirai is choosing to focus on mobile devices, games, and digital imaging after 4 consecutive annual losses. Sony sold a chemical-products unit, stakes in two display companies, and invested in Olympus Corporation to revive their growth.
Sony kept their full year net income forecast unchanged at 20 billion yen and an operating profit at 130 billion yen. The sales estimate was reduced to 6.6 trillion yen from 6.8 trillion yen.
“The operating environment for Sony continued to be severe primarily due to a slowing of the global economy,” said Sony in a statement.
Sony cut their annual TV sales target to 14.5 million units from 15.5 million units. The operating loss at the home-entertainment unit includes the TV operations shrank to 15.8 billion yen in the quarter ended September 30 compared with 41.8 billion yen one year earlier.
Sony sliced the Bravia models offered in the U.S. and Japan to a combined 39 from 79. They also ended a TV panel venture with Sharp Corporation.
Full-year compact camera sales was reduced to 16 million units from 18 million units. The company cut estimates for game players this year to 10 million and PC computers to 8.5 million units.