Sony warns of continuing losses, continues restructuring

Predicts sixth year of losses in past seven

Tags: JapanSony Corporation
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Sony warns of continuing losses, continues restructuring (Getty Images)
By  Stephen McBride Published  May 14, 2014

Sony Corp today warned investors of a projected sixth year of net losses in the past seven, as the electronics giant prepared to withdraw from unprofitable markets and cut costs in an effort to stem the downturn.

According to Reuters, Sony pledged a JPY135bn ($1.32bn) investment in restructuring in the in the year to 31 March, on top of the JPY177.4bn it spent the previous year. Major units being sold off include the underperforming Vaio notebook division.

Sony's domestic rival Panasonic has meanwhile staged a turnaround by targeting the enterprise segment.

Sony forecast that the restructuring expenses would result in a JPY50bn loss for the 2014/15 financial year. Combined losses over the past seven years now amount to almost JPY1trn.

"We'll make this a year of biting the bullet on restructuring," said Sony's chief financial officer, Kenichiro Yoshida. "I'd like to finish restructuring this year."

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