Kaz lays out future...

[theprof00]

Jereel Hunter said:

theprof00 said:

That's because it's not 7B lost. It's 3.7B. The other 3B is money that never existed; That 3B is tax deferal credits in the US that are meant to help a business after some bad years. Until they make a profit, they can't use that money to "pay their taxes", so in a way, yes they did lose 3B in savings that they will eventually have to pay in taxes, but they didn't do so poorly as to actually have lost that money.

The USA was like, hey you had a bad year, you lost money. Normally, ahd you made money, you would've had to pay 100M$, so, next year, in order to help you out of this tight spot, here's a coupon for 100M. If you make profit and have to pay, 120M, then use this coupon and only pay 20M.

Sony lost their coupon.

So, given that circumstance that you are misinformed about, they are only 3.7B down this year which is mostly due to 1) tokyo fukushima disaster and flooding in thailand 2) the currency market.

Japan has pledged to hit an inflation rate of 1% in an attempt to offset international losses. Japan has contributed about .1 % so far, and while the currencies are fluctuating, the yen has dropped against other currencies. What this means is that every dollar buys more yen. Meaning more profit. Since January, Sony has gained roughly 500-600M $ in currency market. (They gain 6B yen per every point the yen drops in each market)

So, combined with 10,000 jobs lost at an average of 40k per employee (about standard for a corporation) That's 400M, say, another .9% gain in currency inflation equaling somewhere between 1.5B-2B$ - 1% of SCEJ value, 170M, and you're looking at a base of 1.75-2.25B reversal, leaving just 2-1.5B in savings they need to make including cutting overhead, selling more systems, and games, less models of tvs, etc etc, and you begin to see it's very much attainable, because most of that cost was "lost assets" relating to factories and production plants in thailand and Japan.

That "base reversal" doesn't take into account the fact that there probably weren't 10,000 people spinning in their chairs and sleeping at their desks. They are reducing costs, but the lost jobs also hit production and development. Claiming that they'll make new products to excite consumers is all well and good, but heavy workforce reductions make that easier said than done. At the end of the day, their likelihood of returning to profitability within a single year is low, because even if they get on the ball and start making products people get excited about, they've lost a lot of mindshare in recent years. How many savvy people buy Sony TV's with LG or Samsung out there making equal or higher quality units for less money? They've got an uphill battle, while I can believe Sony can turn things around and do better, it's also a claim they've been making for 9 or so years, so I doubt it will happen as quickly as they say.

"7B$ reversal is impossible"

At least now you're trying to use facts, despite you have no source for who lost their jobs or how it supports your point.

This is a fact Jareel, and you can go ask kowen for confirmation, the tv segment has been the single thing holding sony out of profitability for several years now. I'd like you to think about that, and then come back when you're ready to discuss civilly, rather than herald the DOOM banner (those people are a dime a dozen.

These buzzwords like mindshare and uphill battle, they're just words. They don't actually prove your point.

The FACT (maybe it's also fun?) is that Sony would be profitable if they weren't getting undercut so heavily by samsung and other tv manufacturers.