Sony Posts Loss, Lowers Outlook

Sony Corp posted a net loss for the September quarter and also lowered the yearly profit estimate as the company’s TV operation suffered a loss, signaling the problems in reviving its electronic hardware operation.

 Currency gains provided some relief

For the second quarter, Sony reported a net loss of 19.3 billion yen ($196.65 million). It also reported a loss from TV operation of 9.3 billion yen compared to the first quarter operating profit of 5.2 billion yen.

Sony pictures division in most of the quarters declined from profits of 7.9 billion yen to losses of 17.8 billion yen. The company said that “a significant decline” is seen in the operating profit performance of Sony pictures, which is partially compensated by strong smartphones sales and currency gains. The company received an insurance claim of $49 million for its factory damaged in 2012 floods in Thailand.

Estimates lowered

 The company’s operating profit estimate for the current year till next March was reduced to 170 billion yen from 230 billion yen, which is below the estimate of 221 billion yen by 22 analysts, reported by Thomson Reuters.

The electronics giant also reduced its yearly target of TV sales. However, the management is expecting to meet its yearly profit for the electronics division.

Sony reduced its sales target of liquid crystal display panel television from 14 million units to 1 million units, and also trimmed the digital cameras sale by 500,000 units to 12 million units. Personnel computers sale target was also reduced by 400,000 units to 5.8 million units.

How are rivals faring?

Panasonic Corp and Toshiba Corp, the Japanese electronics maker, have also suffered losses from its TV operations due to stiff competition from Asian counterparts.

Panasonic posted a profit for the six months period to September and doubled the yearly earnings estimate, due to weak yen and cost cutting measures. It reported a profit of 169.3 billion yen (US$1.72bil) compared to a net loss of 685.2 billion yen a year prior.

Another Japanese electronics maker Sharp also posted a loss, but its first half net loss fell sharply to US$44 million due to stronger sales and cost cutting. The company, for April-September period, reportedly lost 4.33 billion yen compared to the loss of 387 billion yen in the last fiscal.