Back In Black: Sony Corp. Reports First Annual Profit Since 2008
Sony Corporation has revealed their Q4 2012 results. Sony hit a 93.9 billion yen ($948 million) profit due to help from a weaker yen that boosted their overseas earnings. Sony hit a profit for the fiscal year ended March 31 after 4 years of consecutive losses.
Annual earnings were 43 billion yen ($434 million), which is a major reversal from a loss of 457 billion yen ($5.7 billion) in the previous year. That was the worst in history since the company was founded in 1946. Sony is expecting a projected 50 billion yen ($505 million) profit for the fiscal year through 2014, which is up 16%.
During the January-March period in in 2012, Sony hit a 255.2 billion yen loss due to rivalry from Apple and Samsung along with a decline in their TV business. Sales for the January-March period grew 8% to 1.7 trillion yen ($17 billion), due to the favorable currency rate.
Sony reported better annual earnings than their forecasts at a 40 billion yen profit ($404 million) and analysts were expecting around 33 billion yen ($333 million). To cut costs, Sony has cut many jobs and sold assets in recent years.
Sony CFO Masaru Kato said that the company’s camcorders and digital camera businesses are struggling compared to entertainment projects. “We must answer to the challenge of making our electronics business profitable, no matter what,” said Kato.
Sony is gearing up to launch a new line of 4K LCD TVs and the PlayStation 4. Sony’s mobile-phone business is also starting to improve with the introduction of the Xperia Z. Sony sold their U.S. headquarters building on Madison Avenue in New York City and other buildings in Tokyo. Sony also sold their stock in Japanese game company DeNA.
In terms of media, Sony Pictures Entertainment did very well with the movies “Skyfall” and “The Amazing Spider-Man.” The company’s best-selling music titles included One Direction’s “Take Me Home” and Justin Timberlake’s “The 20/20 Experience.”