Sony Expects Loss to Narrow for Year
TOKYO (AP) — The Sony Corporation said on Monday that it would probably book a much narrower loss last year in part because of cost cuts and better electronics sales.
Sony said it expected a net loss of 41 billion yen ($440 million) when it reported earnings Thursday for the fiscal year ended March 31. The result represents a big improvement from a 98.9 billion yen loss the previous year.
The company, based in Tokyo, which has businesses spanning video games, gadgets, music and movies, also said it bounced back to an operating profit of 32 billion yen, in line with analyst expectations, after a 227.8 billion yen loss a year earlier.
Since taking over in 2005, Howard Stringer, the chief executive, has been trying to unite the company’s sprawling businesses, improve efficiency and rein in costs. His efforts appear to be paying off, with company leaner and more united as it prepares for a big push into 3-D technology this year.
In its previous forecast released in February, Sony projected an annual net loss of 70 billion yen and an operating loss of 30 billion yen. On Monday it downgraded its revenue forecast to 7.21 trillion yen, from 7.3 trillion yen.
Sony said electronics prices, including those of LCD TVs, did not fall as sharply as expected. It also managed to make bigger cuts in production and operating expenses.
Its Vaio computers and gaming products sold well, and its insurance unit benefited from a rise in the value of its stock market investments, Sony said in a statement.
Sony shares closed up 0.7 percent at 3,080 yen Monday
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