Sony Described As An Ugly Company As Panasonic Shares Surge

Written by David Richards     04/11/2013 | 09:01 | Category: TVS & LARGE DISPLAY

Analysts are today calling Sony an "ugly" Company after their shares slumped 11% in Tokyo following another loss for the quarter, in comparison Panasonic shares surged 6% following a $2.4B profit.

Sony Described As An Ugly Company As Panasonic Shares Surge

As consumers turn off buying Sony consumer electronics products and poor performance in its movie and electronics business because of box office flops such as "White House Down" and "After Earth" Sony cut its sales forecasts for four of its electronics products: TVs, PCs, digital cameras and video cameras.

The fall in their share value slashed about $1.8 billion from Sony's market capitalisation.

In contrast, Panasonic shares surged more than 6% to their highest level since April 2011, after the company doubled its full-year net profit outlook and returned to the black in the second quarter ending September.

The Wall Street Journal said that while Panasonic is accelerating restructuring, its cash flow is improving as profits pick up, and it is aggressively pursuing growth through moves such as the acquisition of Turkish firm Viko in the strategic housing fixtures field, said Koki Shiraishi, an analyst at SMBC Nikko Securities.

Panasonic's lesser-known units, such as its "eco-solutions" business which includes all energy-related devices and materials used in building houses, drove most of Panasonic's profit growth, in part because demand for housing equipment in Japan is rising as people buy homes ahead of an expected April hike in the sales tax.

Sharp shares are also up about 2.8%, after the electronics maker posted its first net profit in eight quarters. It said profitability at its liquid crystal display business managed to reverse a $2.5 billion loss in the same period a year ago.