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
Maybe they will become an electronics company again
5/15/2012 10:46:47 AM
As my title states, maybe Sony will become an electronics company once more. They completely stopped innovating on the electronics front because a lot of those innovations had potential to hurt their music and movie industry due to possible piracy. They keep removing more and more features that consumers want, and keep adding more and more features that consumers don't want, and they are surprised when people stop purchasing their crap (which is what it is now, especially since almost all of it breaks within a few years due to using cheap components).
"I modded down, down, down, and the flames went higher." -- Sven Olsen
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
Motorola Further Increases Moto 360 Battery Life with New Update
October 22, 2014, 8:08 AM
Apple's iPad Air 2 Features Triple-core A8X Processor, 2GB of RAM
October 21, 2014, 8:32 PM
Toshiba Launches 11”, 2-in-1 Convertible PC for $329
October 21, 2014, 2:11 PM
Microsoft Begins Shifting Nokia Lumia Branding to "Microsoft Lumia"
October 21, 2014, 10:52 AM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Buoyed by Strong iPhone Sales, Apple Reports Revenue of $42.1B, $8.5B in Profit for Fiscal Q4
October 20, 2014, 5:21 PM
Most Popular Articles
Cool Science Video of the Day: Carnivorous Leech Eats Giant Jungle Worm
October 16, 2014, 6:44 PM
HBO, CBS Lead Charge to Ditch Cable
October 16, 2014, 4:40 PM
PS4 "Masamune" Update 2.0 Will Bring New Music and Customization Features
October 17, 2014, 1:05 PM
Report: 2015 Ford Focus Electric MSRP Slashed by $6,000, Will Retail for $29,995
October 18, 2014, 6:23 PM
Apple Announces iPad Air 2, iPad mini 3, 27" iMac with Retina Display
October 16, 2014, 1:22 PM
Latest Blog Posts
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
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information