JAPAN: Sony forecasts nearly $1 billion in profits for the current year, even after huge net losses in the previous year
Record ID:
451673
JAPAN: Sony forecasts nearly $1 billion in profits for the current year, even after huge net losses in the previous year
- Title: JAPAN: Sony forecasts nearly $1 billion in profits for the current year, even after huge net losses in the previous year
- Date: 27th May 2011
- Summary: TOKYO, JAPAN (MAY 26, 2011) (REUTERS) ( ** BEWARE FLASH PHOTOGRAPHY **) EXTERIOR OF TOKYO STOCK EXCHANGE (TSE) SONY CORPORATION CHIEF FINANCIAL OFFICER MASARU KATO (RIGHT) TAKING SEAT AT NEWS CONFERENCE KATO GIVING NEWS CONFERENCE (SOUNDBITE) (Japanese) SONY CORPORATION CHIEF FINANCIAL OFFICER MASARU KATO, SAYING "We predict a net profit of about 80 billion yen in 2011." JOURNALIST TAKING NOTES (SOUNDBITE) (Japanese) SONY CORPORATION CHIEF FINANCIAL OFFICER MASARU KATO, SAYING "Despite the negative effects from the earthquake in Northeastern Japan, this year we expect four-percent increase in sales and about the same level of net profit." MORE OF KATO GIVING CONFERENCE PHOTOGRAPHER TAKING PHOTOS (SOUNDBITE) (Japanese) SONY CORPORATION CHIEF FINANCIAL OFFICER MASARU KATO, SAYING "There are concerns about sales drop of PlayStation 3 and other devices that connects to our networks, but we're not actually worrying." STOCKS EXCHANGE TICKER STOCKS EXCHANGE BOARD BOARD SHOWING SONY SHARES BEING TRADED AT 2,233 YEN DOWN 3 YEN MORE OF STOCKS EXCHANGE BOARD STOCKS EXCHANGE BOARD SHOWING NIKKEI 225 AVERAGE AT 9555.61 UP 132.73 MORE OF TICKER
- Embargoed: 11th June 2011 13:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Entertainment,Industry
- Reuters ID: LVA362ERYFKORAVY4COMUYXHN7Y
- Story Text: Sony Corp forecast a net profit of 80 billion yen ($975 million U.S.dollars) on Thursday (May 26) for the year that started on April 1, after net losses ballooned to 260 billion yen ($3.1 billion U.S. dollars) last business year on a tax credit write-off.
"We predict a net profit of about 80 billion yen in 2011," said Sony Corp. CEO Masaru Kato during an announcement at Tokyo Stock Exchange building.
The electronics and entertainment company also said it expects to make an operating profit of 200 billion yen (approx $2.4 billion U.S.dollars) this business year, level with last year and in line with guidance given earlier in the week.
"Despite the negative effects from the earthquake in Northeastern Japan, this year we expect four-percent increase in sales and about the same level of net profit," Kato added.
On Monday (May 23), Sony revised its estimate of net profit for the year ending on March 31, saying the impact of Japan's earthquake had clouded near-term prospects in the local market, forcing it to take a charge on tax credits.
Sony is reeling from one of the biggest ever Internet security breaches, which forced it to close its PlayStation videogames network for nearly a month after data on tens of millions of user accounts was leaked.
Hacking attacks exposed more than 100 million accounts on its online gaming network to possible data theft. On Tuesday (May 24) Sony said additional websites in four countries had also been hacked.
Among the break-ins, personal information for 8,500 people was leaked from its Greek Sony Music Entertainment website.
Even so, The company also predicted that it will sell 15 million of its flagship PlayStation 3 game consoles in the current business year compared with 14.3 million in the year just ended.
"There are concerns about sales drop of PlayStation 3 and other devices that connects to our networks, but we're not actually worrying," Kato said.
Sony reiterated its plan to release a next generation portable games device by the end of 2011.
Shares in Sony rose 0.1 percent to 2,238 yen on Thursday ahead of the announcement compared with a 1.5 percent gain in the benchmark Nikkei average. - Copyright Holder: REUTERS
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