Sony Corp have just announced its results for the year end which shows sales falling as the impact of earthquake and flat performance hit home.
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Total sales fell 0.5% to 7,181.3 billion yen or U.S$86,521 million year-on-year primarily due to a decrease in sales “in all segments” except two.This comes as it announced a profit warning to shareholders earlier this week.
And Sony also confirmed it recorded an overall net loss of US$259.6m which it attributed to a write-off of tax credits and is forecasting a profit of $80m for this year.
Its adjusted operating income for the period to March 31, 2011was $3,046bn – an 18.5% increase on the previous fiscal year despite the large unfavorable impact of foreign exchange rates.
The exceptions were its consumer, professional & devices (CPD) division, which includes its includes Bravia televisions, audio and video which showed sales of $43,045m – an increase of 16 per cent – due to higher LCD TV sales. Its LCD sales increased over the period due to subsidy from the Japanese government and the chageover to digital.
Its network products and services sector (which includes Playstation and laptops) also rose 0.4per cent to US $19,028m.
By division, Sony Ericsson mobile business recorded a net income of 4.2 billion yen ($US50 m) compared to net loss of $34.5bn yen in the previous fiscal year.
However, the impact of the Japanese earthquake that occurred in March 11 shook the electronics giant hard, it admitted, and lost over $200m so far including $143m, due to idle manufacturing sites and paying out for staff life insurance policies as well as incremental expenses, including restoration and asset repair costs repair, which cost $131m.
This won’t come as good news to the Japanese giant who is struggling not only with earthquake recovery but also the recent hacking of its PlayStation network, which has proved a PR nightmare for the brand.
In addition, Sony wrote down a further $61 million loss due to the estimated loss associated with decreased sales due to the the disaster.
Operating income adjustments included net income (loss) of affiliated companies, restructuring charges and a non-cash charge related to LCD television asset impairment, Sony also said today.
And it is also looking at cost cutting measures as well as horizontal platforms, vowing to make changes.
“Sony is undertaking structural transformation initiatives to enhance profitability through implementation of various cost reduction programs as well as adoption of horizontal platforms,” it said today.
More to follow
