JAPAN: AS TECHNOLOGY SHARES PLUMMET, SONY UNVEILS NEW BUSINESS PLANS TO KEEP PROFITS BOOMING

Record ID: 451758

  • Title: JAPAN: AS TECHNOLOGY SHARES PLUMMET, SONY UNVEILS NEW BUSINESS PLANS TO KEEP PROFITS BOOMING
  • Date: 30th March 2001
  • Summary: (U3) TOKYO, JAPAN (MARCH 29, 2001) (REUTERS) 1. SLV SONY SEMINAR 0.06 2. SCU VIDEO SHOWN AT SEMINAR (7 SHOTS) 0.22 3. MV SONY OFFICIALS ON STAGE 0.26 4. (SOUNDBITE)(Japanese) SONY CHAIRMAN AND CHIEF EXECUTIVE NOBUYUKI IDEI SAYING "In the era of broadband networks, Sony has both the hardware for a network gateway and content. Up until now, over the last decade Sony, which is an electronics firm has overcome many differences through acquisition of firms like Sony Music, by bridging the gap between eastern and western cultures and through working with record companies based in New York and movie companies based in Hollywood, to prepare for this day" 1.17 5. SCU SCREEN PRESENTATION; SLV REPORTERS LISTENING; MV IDEI AT PODIUM (3 SHOTS) 1.33 6. SLV INTERIOR OF TOKYO STOCK EXCHANGE 1.42 7. MV PEOPLE WORKING AT STOCK EXCHANGE; ELECTRONIC BOARDS (3 SHOTS) 1.55 8. SCU CURRENCY BROKERS WORKING; ELECTRONIC BOARDS; MV/SCU/MV MORE CURRENCY WORKERS (12 SHOTS) 2.57 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 14th April 2001 13:00
  • Keywords:
  • Location: TOKYO, JAPAN
  • Country: Japan
  • Reuters ID: LVA4M2G8FSN4WHZ88QYSKK2NN63G
  • Story Text: As global technology shares plummet, Sony has unveiled
    new business plans to keep the company's profits booming.

    The new direction was unveiled at a seminar in Tokyo on
    Thursday (March 29).

    Sony hopes to re-ignite its business by focusing more on
    mobile products, an area where Japan is leading the world and
    seeing brisk growth.

    The electronics giant is upgrading its cellular phone
    handset operations into a full division and emphasize its
    mobile computing products.

    It also hopes to cash in more on its software sectors
    "In the era of broadband networks, Sony has both the
    hardware for a network gateway and content. Up until now, over
    the last decade Sony, which is an electronics firm has
    overcome many differences through acquisition of firms like
    Sony Music, by bridging the gap between eastern and western
    cultures and through working with record companies based in
    New York and movie companies based in Hollywood, to prepare
    for this day," Nobuyuki Idei, Sony chairman and executive
    officer told reporters at the seminar.

    As part of its strategic business plan for the 2001/02
    year beginning in April, Sony said it would increase the
    number of its major divisions, internally called "network
    companies", to seven from the current five. The structure was
    first adopted in 1999.

    Sony also moved to centralise management by creating what
    it calls a "global hub" which will be led by Chairman and
    Chief Executive Nobuyuki Idei, President and Chief Operating
    Officer Kunitake Ando, and Chief Financial Officer Teruhisa
    Tokunaka.

    This global hub will centralise decision making on
    strategic investments and also exercise greater control over
    strategy in its U.S. entertainment holdings as well as Sony's
    new ventures into financial areas, such as banking. Sony
    already operates liability and life insurance units.

    Sony's profits sagged in the crucial last three months of
    2000, hit by production glitches on its flagship PlayStation2
    game console and lingering strength in the yen, causing it to
    halve its full-year net profit forecast to 5 billion yen
    (40.89 million U.S. dollars).

    As Sony announced it's future plans, the Tokyo stock
    market took another hit on Thursday after U.S. stock fell
    overnight.

    The benchmark Nikkei average closed down 693.15 points or
    5.04 percent at 13,072.36, its biggest one-day percentage loss
    since April 17 2000, when the average dropped 6.98 percent.

    The dollar was bid at 122.45 yen at 0605 GMT slightly
    above the late Wednesday (March 28) New York figure of 122.23.


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