Sony Logs Group Net Loss of 7.26 Bil. Yen in April-June Qtr
Posted on: Thursday, 28 July 2005, 12:00 CDT
Jul. 28--TOKYO -- Sony Corp. on Thursday reported a larger-than-expected group net loss of 7.26 billion yen in the April-June quarter, a turnaround from a net profit of 23.26 billion yen a year earlier, due to tumbling television sales and falling consumer product prices.
It was the electronics and entertainment giant's first earnings announcement since Howard Stringer and Ryoji Chubachi were appointed group chief executive officer and president as part of a management reshuffle last month. They are scheduled to unveil a fresh business strategy in late September.
In its consolidated results, calculated under U.S. accounting criteria, Sony said its pretax profit came to 12.90 billion yen, up 95.1 percent from a year earlier, but its operating balance was a loss of 15.28 billion yen against a year-before profit of 9.77 billion yen.
Net loss per share was 8.68 yen in the first quarter of its business year through next March, compared with a profit of 25.10 yen a year earlier.
Sony also saw group sales contract 3.3 percent to 1,559.43 billion yen in the latest quarter from 1,612.14 billion yen a year before.
The company's electronics division posted an operating loss of 36.3 billion yen against a year-before profit of 8.3 billion yen, under intense pressure from rivals on TV sets as well as price discounts to cope with the competition.
Sony also slashed its earnings forecasts for the full year. It now expects a consolidated net profit of 10 billion yen, down from 80 billion yen as projected earlier, and a pretax profit of 70 billion yen, down from 170 billion yen.
Operating profit is forecast to total 30 billion yen, a fall from 160 billion yen, on sales of 7,250 billion yen, down from 7,450 billion yen.
The company attributed the downward revisions to higher restructuring-related costs, in addition to poor TV sales and declining product prices.
The new estimates are based on its assumption that the dollar will average 107 yen and the euro 130 yen for the July-March period.
It had earlier projected rates of 103 yen for the U.S. currency and 133 yen for the single European currency.
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Source: Kyodo News International, Tokyo
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