JAPAN: Sony Corp flags a record 6.4 billion US dollars annual net loss, doubling an earlier forecast and a fourth straight year of red ink, as it writes off deferred tax credits, heaping more pressure on its new CEO to turn around the electronics giant

Record ID: 451685

  • Title: JAPAN: Sony Corp flags a record 6.4 billion US dollars annual net loss, doubling an earlier forecast and a fourth straight year of red ink, as it writes off deferred tax credits, heaping more pressure on its new CEO to turn around the electronics giant
  • Date: 11th April 2012
  • Summary: TOKYO, JAPAN (APRIL 10, 2012) (REUTERS) VARIOUS OF SONY CHIEF FINANCIAL OFFICER MASARU KATO (RIGHT) SEATED IN FRONT OF PROJECTOR SCREEN AT PRESS CONFERENCE JOURNALISTS AT CONFERENCE (SOUNDBITE) (Japanese) SONY CHIEF FINANCIAL OFFICER, MASARU KATO, SAYING: "There are many factors that have hit us, starting with the impact of last year's earthquake and tsunami. There's also been the continuing strength of the yen, flooding in Asia, and a very difficult maturing market in the U.S. But looking ahead, we will strive to return to profitability." KATO AT PRESS CONFERENCE (SOUNDBITE) (Japanese) SONY CHIEF FINANCIAL OFFICER, MASARU KATO, SAYING: "We are of course looking at equity finance as one of a range of options in the planning process. But we have nothing concrete we can announce at this point in time."
  • Embargoed: 26th April 2012 13:00
  • Keywords:
  • Location: Japan, Japan
  • Country: Japan
  • Topics: Business,Economy
  • Reuters ID: LVACNTKTA8Z42RA48QYOR8A6HEX7
  • Story Text: Undeterred by a record 6.4 US dollar loss forecast, Sony said on Tuesday (April 10) it expected to bounce back this year and make an operating profit of 180 billion yen.
    The forecast issued on Tuesday for the business year to March 2012 is double the February forecast of 220 billion yen. It is also the fourth straight year that Sony has suffered losses.
    Sony's Chief Financial Officer Masaru Kato put the losses down to unforeseen factors such as unpredictable natural disasters and was thin on options to reverse the plummeting trend that analysts have put down to lack of innovative gadgetry.
    "There are many factors that have hit us, starting with the impact of last year's earthquake and tsunami. There's also been the continuing strength of the yen, flooding in Asia, and a very difficult maturing market in the U.S. But looking ahead, we will strive to return to profitability," Kato told reporters at a press conference. "We are of course looking at equity finance as one of a range of options in the planning process. But we have nothing concrete we can announce at this point in time."
    Sony, which plans to axe 10,000 jobs - around 6 percent of its global workforce - according to media reports this week, has been hammered by weak demand for its televisions and overtaken by more innovative gadget rivals such as Apple and Samsung.
    Kazuo Hirai, who took over as CEO this month, has said he is prepared to take "painful steps" to revive the company and would not hesitate to scale back or withdraw from businesses if they were not competitive.
    The additional loss is from write-offs of tax credits in the United States, which the company cannot use because of the losses it has racked up.
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