Sony Posts Poor Quarterly Earnings, Cuts Sales/Profit Predictions
August 2, 2012 1:59 PM
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Sony CEO Kazuo Hirai
The company said a weak global economy and exchange rate moves are the cause
Sony is in hot water -- that's nothing we haven't heard before. The electronics company has been struggling with areas like its TV sector for a while now, and these troubles are reflected in the most recent financial earnings report.
Sony posted operating profit of $6.28 billion yen ($80 million), a significant 77 percent decrease compared to one year earlier. Analysts only predicted a 36 percent profit drop.
Sony had a 94 billion yen operating loss and $24.64 billion yen net loss for the quarter ended June 30.
Also, Sony slashed its previous financial predictions for the year until March 2013. It cut its operating profit forecasts from 180 billion yen to 130 billion yen, and also reduced its TV shipment predictions from 17.5 million to 15.5 million as well as its handheld device sales from 16 million to 12 million.
One glimmer of light, however, is that PlayStation sales are remaining at the previous prediction of 16 million sales.
So what's Sony's beef? The company said a weak global economy and exchange rate moves. Also, a lot of it has to do with the company's TV unit. 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.
But help may come in the form of the new CEO,
, who was appointed to the position in February 2012. He vowed to
take over the struggling TV unit
himself, and made
other management changes
to help bring the company back to life.
In April 2012, Hirai came up with an
entirely new game plan
for making Sony profitable, which included design changes to gadgets like TVs, a reduction of certain models, and expanded game titles and subscription services.
Despite Hirai's best efforts, the company had to
cut 6 percent of its global workforce
in April in order to save some cash. Later, in May, Sony reported a record
$5.7 billion USD annual loss
This article is over a month old, voting and posting comments is disabled
RE: Make the PS4 a be all, end all device
8/2/2012 6:39:36 PM
I actually would like to use SSDs for the games itself. Hard drives have become so cheap now they can stick a 500GB HDD in there with minimal impact to development costs.
"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
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