sony cuts profit forecast

[Ail]

kitler53 said:
...sony makes what i would consider "luxury" products which is a hard sale in a poor economy like this. the fact that they are making any profit (i'm assuming that since this is a forecast not a report) is probably good enough for them atm.

 

They are getting hit real hard by the exchange rate too.

So far they were holding steady thanks to the euro market as the yen and the euro while raisin against the dollar had kept on par with each others.

But for the last few months the yen has remained strong while the euro and the dollar dropped in value.

This can have a very very bad effect on profit ( less on sales).

If you make 20% profit on a item sold in Europe and suddenly the euro/yen conversion rate changes by 10%, half your profit is gone without you doing anything.....