Sony’s fall story: Going to post 1.1 billion loss for this fiscal year
Electronics giant Sony is going to post 100 billion yen ($1.1 billion) operating loss for this fiscal year. The media reports said on Tuesday that the losses are coming from the company’s core electronics division, which has long been a steady source of profits.
Sony has seen the drop in sales of LCD screens and other products as well. From the initial analysis, the reason behind this drop are appearing as below:
- The bottom line has been hurt by the strong yen, which cuts profits on goods sold abroad
- Neck to neck competition in electronics market by new players
- Cost cutting not applied yet
- About 80% of its sales come from overseas
Last month, Sony said it would implement major cost-cutting to ride out the current economic downturn, including slashing 4 percent of its work force, lowering spending and shutting plants.
Company revisited its operating profit forecast to 200 billion yen which is 57% less than the earliest target of 470 billion yen.Sony said it would implement major cost-cutting to ride out the current economic downturn, including slashing 4 percent of its work force, lowering spending and shutting plants.
Report is available on Huffington Post
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