Farsala said:
Tarumon said:
Sony presents financials on a consolidated basis, meaning it shows revenue and expenses for companies as if they owned 100% , then pull out the net effect of the portions it doesn't really own. Sony the consoidated presentation was profitable, but Sony the actual company lost 10.8 billion Yen during the 3rd quarter. Hence the outlook for the year in its entirety remained the same, despite Yen depreciation.
The increase in sales for Sony came not from having actually sold more of something, but from how they incorporated Sony Mobile's sales differently this year. Whereas last year, Sony Mobile was accounted under Equity Method (pro rata share of sales reported), this year Sony is showing the whole piece. Hence the statement:
"On a pro forma basis, had Sony Mobile been fully consolidated in the same quarter of the previous fiscal year, consolidated sales would have remained essentially flat."
Sony's financial conditions in fact went downhill in this all important Holiday quarter. More Debt, Less Equity as a result of the net loss.
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Yes, most of the Japanese companies are having favorable exchange rates, but still accumulating more debt and less sales. If the exchange rates all of a sudden reversed then they would not have much breathing room to make a profit.
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I'm actually shocked by these results. One would of thought with current exchange rates, they would of easily posted a profit this quarter. I mean Nintendo posted 450 million net profit and Sony 115 million loss, how come? I'm at a loss of words here. Furthermore, posting a 6 million profit for the gaming division is simply disappointing and troubling. Once PS4 hits, their gaming division will post losses once more. I don't know what to take from this.
