kowenicki said:
Exchange rate issues, the current economic situation and the sony business model of low margins are by far the biggest problem.
e.g. In July, when the maker of Bravia televisions forecast full-year operating profit of 200 billion yen ($2.6 billion), Sony assumed the euro would trade at about 115 yen from July to March. The company loses about 6 billion yen of annual operating profit, or sales minus the cost of goods sold and administrative expenses, for every 1 yen decline against the euro, according to Mami Imada, a Sony spokeswoman source Bloomberg. by the way.... Euro is now 103. another significant drop since the last financials |
"Sony expected an annual operating profit of at least $2 billion"
Tsunami hits:
"$3.1 billion lost"
"The Japanese electronics and entertainment conglomerate is now projecting a 90 billion yen loss ($1.2 billion)"
2 - 3.1 = -1.1billion.
Your currency against euro above: 6B yen per point. 12 points. 72B yen = 937 million
Thai floods = 320 million
2 billion minus 1.25 billion = .75B operating profit without the tsunami.