Sony Reports Record $5.7 Billion USD Annual Loss
May 12, 2012 7:33 PM
comment(s) - last by
However, the good news is that this number didn't meet the company's annual net loss estimates of $6.4 billion USD, which it predicted last month
It's become pretty well-understood that Sony is a sinking ship that requires quite a few fixes before it can ever be saved, but if its latest annual loss is any indication of what's to come, Sony isn't coming up for air anytime soon.
Sony recently reported a record-breaking annual loss of 457 billion yen ($5.7 billion USD), which is the company's fourth straight year of losses. However, the good news is that this number didn't meet the company's
annual net loss estimates of $6.4 billion USD
, which it predicted last month.
To break it down a bit further, quarterly sales increased 1.2 percent on-year to $1.6 trillion yen ($20 billion USD) and annual sales decreased 10 percent to 6.5 trillion yen ($81 billion USD). For January through March 2012 alone, Sony reported a loss of 255 billion yen ($3.2 billion USD).
A lot of Sony's issues have to do with its TV unit, which has seen eight straight years of quarterly losses.
Last December, Sony decided to shake up its TV division by
negotiating a buyout
of its 50 percent manufacturing stake with Samsung in the LCD joint venture. It also
split its TV division into three units
consisting of sales of LCD TVs, outsourcing manufacturing to cheaper foreign facilities and developing future TVs.
In March 2011, Sony's new CEO Kazuo Hirai said he would personally take over the struggling TV business himself while
making other management changes
to help bring the company out of the red. For instance, he made digital imaging, games and mobile the three core pillars of the company. Hirai also appointed new figures to oversee other departments and even introduced a new medical business unit.
Just last month, Hirai laid out a
whole new game plan
for Sony that aims to make the Japanese company profitable again. This plan included design changes to gadgets like TVs, a reduction of certain models, and expanded game titles and subscription services.
While these changes are a good start, the company
is still having a hard time for now. Sony ended up having to
cut 6 percent of its global workforce
in early April, which was about 10,000 employees.
Sony is staying positive though, hoping that entertainment blockbusters like "The Amazing Spider-Man," "Skyfall," and "Men in Black 3" will help the company out a bit.
"This year remains crucial for a recovery in our electronics business," said Masaru Kato, Sony's chief financial officer. "A fifth straight year of losses should never be tolerated."
This article is over a month old, voting and posting comments is disabled
5/14/2012 12:14:32 PM
Right...relatively, i.e. not losing billions every quarter. You can't really compare any corporation to samsung, which has such a monopoly in multiple industries in Korea that they literally have their own city.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Sony CEO Lays Out New Plans to Make Company Profitable
April 12, 2012, 11:08 AM
Sony Ups Annual Net Loss Prediction to $6.4 Billion USD
April 10, 2012, 10:36 AM
Sony to Cut 6 Percent of Its Global Workforce
April 9, 2012, 10:38 AM
New Sony CEO to Take Over Struggling TV Unit, Make Other Management Changes
March 27, 2012, 10:08 AM
Sony Sells LCD Panel Joint Venture Shares to Samsung
December 26, 2011, 11:31 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information