kowenicki said:
Squilliam said:
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.
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and yet...
Kaz is expecting a V shaped return with profits of $2.2bn next year!!??
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Well... What have they actually DONE lately which would even justify what amounts to a $5.8B profit turnaround? They make good hardware but their software sucks and they are falling behind in terms of investment. What will they do when Samsung and LG come out with OLED TVs at a reasonable price?
I bet had I got a Samsung LED TV the damn DLNA function would actually be working properly like it does on every other device in the house. Actually I got it replaced under warranty because my old Sony blew itself up. I like Sony, I typically buy Sony. However Sony just aint Sony like they used to be.
