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).
"If you mod me down, I will become more insightful than you can possibly imagine." -- Slashdot
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
Google’s “Material Design” Language Spreads to Play Store App
July 14, 2014, 10:00 AM
Quick Note: QNAP Announces $129 QGenie 7-in-1 NAS for Mobile Users
July 14, 2014, 9:32 AM
Samsung Continues to Pick on Apple's iPad in Two New Commercials
July 13, 2014, 5:35 PM
Apple Barks Back Against Claims That iOS is a National Security Threat to China
July 13, 2014, 5:04 PM
Amazon Seeks FAA Permission to Test 50 MPH Flying Drones
July 11, 2014, 12:32 PM
Samsung Fails to Launch its Tizen-based Smartphone in Moscow, Unsure of New Launch Date
July 11, 2014, 9:00 AM
Most Popular Articles
Apple's iPhone, iPad Update iOS 7.1.2 is Badly Broken for Some
July 8, 2014, 2:00 PM
Buzz Aldrin Says First Astronauts to Set Foot on Mars Should Never Return Home
July 9, 2014, 9:46 AM
Update: Cadillac ELR Plug-in Hybrid "Sales Fail" Continues, Dealers Offering Up to $19k Off
July 11, 2014, 3:34 PM
Despite Legal Threats Google Begins Posting Warnings of ISP Throttling
July 7, 2014, 5:52 PM
Samsung Sales, Profit Drops in Q2, Apple Sees Troubling Signs Too
July 8, 2014, 8:18 PM
Latest Blog Posts
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
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information