| MUMBAI:
Japanese conglomerate Sony is forecasting its first full-year net loss in 14 years,
of 150 billion yen, versus the previous year's profit of 369.4 billion yen.
Consolidated sales and operating income for the second half
of the fiscal year ending 31 March 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.
Sony
has projected an operating income loss of 260 billion yen
versus operating income of 475.3 billion yen in the previous
fiscal. It expects sales and operating revenue to fall from
8871.4 billion yen for the previous fiscal to 7,700 billion
yen.
In
the electronics segment, operating loss is expected to be approximately ¥340
billion which is lower than the earlier forecast. Of this, approximately ¥250
billion is due to a
deterioration in the business environment brought on by
the slowing global economy and an intensification of price competition, approximately
¥40 billion is due to the impact of the appreciation of the yen, approximately
¥30 billion is due to additional restructuring charges and approximately ¥20
billion is due to a deterioration in equity in net income (loss) of affiliated
companies.
In the gaming segment, operating income (loss) is expected
to be lower by approximately ¥30 billion. Of this, approximately
¥15 billion is due to the impact of the appreciation of
the yen and approximately ¥15 billion is due to lower-than-expected
sales.
In the movie segment, operating income is expected to be lower
by approximately ¥13 billion due to restructuring charges,
a decline in revenue as a result of the economic
slowdown and the impact of the appreciation of the yen.
In the financial services segment, operating income (loss)
is expected to be lower by approximately ¥65 billion mainly
due to a deterioration in earnings at Sony Life Insurance.
Preliminary
consolidated results for the third quarter show a 95 per cent decline in profit,
hurt by losses from affiliated companies, restructuring charges, and 25 per cent
decline in sales, amid falling demand.
Third-quarter
preliminary consolidated net income was 10 billion yen, down
from 200.2 billion yen recorded last year. For its preceding
second quarter, Sony reported a 71.8 per cent decline in profit
to 20.8 billion yen, or $200 million, hurt by weak sales,
stronger yen, and absence of prior-year one-time gain.
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