Sony warns of further losses
Shares slide on poor financial outlook
Sony Corporation has warned of further losses for the fourth straight year, due to a $2.2 billion loss from its television unit, falling demand, sinking US shares, a surging Yen and market concerns about the viability of its high-profile TV business, according to Reuters.
The Bravia TV, Vaio computer and PlayStation game console manufacturer slashed its sales forecasts for TVs, cameras and DVD players on Wednesday and reported it may suffer a $1.1 billion net loss for the current financial year.
Sony has vowed to bring an end to losses in its TV division, which it expects to report its eighth straight annual loss at around $2.2bn this financial year.
It has also cut its TV sales forecast by 9% to 20 million sets, its second reduction this year.
The company has given scant details of its plan to shrink losses next year and drag the unit into the black by March 2014.
"The TV business is an essential part of Sony's growth strategy. We, as management, feel a great sense of crisis after seven straight years of losses," Kazuo Hirai, executive deputy president, told Reuters.
Sony also slashed its full-year operating-profit to its lowest level in three years, slicing off 90%.
The company said earlier this week that it would split its television business into three divisions of outsourcing, LCD TVs and next-generation TVs from 1st November to try to turn around the operation.
Sony shares have fallen 48% since the start of the year, compared with a 16% fall in the broader market, hit by the March earthquake and a massive security breach on its PlayStation and other networks, as well as yen strength and the Thai flooding disaster.
Sony US-listed shares were down 6.8% at $18.36 in afternoon trading.