| kowenicki said: I was looking for that Sony profit history that I posted in here and had another read of this thread... wow!! Some of the responses in here are almost hysterical. |
BAD OUTLOOK: Sony Corp. more than doubled its projected annual loss to 520 billion yen ($6.4 billion), which would be its worst loss ever.
THE REASON: A massive non-cash tax charge, which the company says stemmed from revaluing U.S. tax credits that are unlikely to be used because of its string of annual losses.
THE TRENDS: This would be the fourth year of losses for Sony. It has for years been struggling to regain the swagger and creative flair that made it a dominant force in the global electronics industry in the 1980s and early 1990s.
http://finance.yahoo.com/news/summary-box-sony-sees-worst-143435632.html
So not only are things looking bad for Sony. They also don't expect things to look up any time soon so are taking a one time hit to revalue their tax credits. To put it in perspective, a $6.4B loss is roughly 1/3rd their current market capitalisation.
I don't really see how things are going to look up for them. On the one hand they have rising competition from Korea, China etc and rising costs from the current high energy prices as Japan is a huge net energy importer as well as costs stemming from rising electricity prices due to the shut-down of the nuclear reactors in Japan. Without even factoring in the appreciating Yen they are in for a rough time.
Tease.
