Sony posts €150m loss for Q2
Falling demand for TVs contributed to Sony, Japan's biggest consumer- electronics exporter, unexpectedly posting a seventh straight quarterly loss.
The second-quarter net loss amounted to15.5 billion yen (€150 million), the Tokyo-based company said in a statement today. Analysts had expected a profit.
The company kept its estimate to report its first annual profit in five years. Sony is cutting 10,000 jobs and selling assets as chief executive officer Kazuo Hirai focuses on mobile devices, games and digital imaging to put an end to four consecutive annual losses.
Sony sold a chemical-products making unit, stakes in two display- making ventures and invested in camera maker Olympus to revive growth after racking up 692 billion yen (€6.7 billion) in losses selling TVs in the past eight years amid competition with market leader Samsung.
"TV sales are worsening this year amid economic downturns in the US and Europe," said Junya Ayada, an analyst at Daiwa Securities in Tokyo. "As the global recession continues, consumers are no longer spending much money on electronic products, as they now have a smartphone that can satisfy most of their needs."
Sony fell 4.1 per cent to 915 yen in Tokyo trading today, extending the loss this year to 34 per cent.
The maker of Bravia TVs, PlayStation video game consoles and Vaio computers kept its full-year net income forecast unchanged at 20 billion yen and operating profit at 130 billion yen.
The sales estimate was reduced to 6.6 trillion yen from 6.8 trillion yen. Sony also cut its annual TV sales target to 14.5 million units from 15.5 million units.