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Forums - Sony - Sony Restructuring Saving $3 Billion

mike_intellivision on 19 June 2009

Love to have more details on this and how financial analysts see this.
(Yes, this is a case where they have utility).

Mike from Morgantown



      


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NJ5 on 19 June 2009
Taz! said:
NJ5 said:
They lost $1.7 billion in the last quarter... you do the math.

Im guessing then that without these saving measures, Sony really would of went bankrupt, literally....

These savings are for the fiscal year which just started, they don't affect last quarter's numbers.

 



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nordlead on 19 June 2009

saving $3B != actually making a profit. Unless they post good profit numbers, this doesn't really mean all that much.




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Nightmare24 on 19 June 2009

Thats great now use that for a ps3 pricecut or bundle.



JEDE3 on 19 June 2009
NJ5 said:
Taz! said:
NJ5 said:
They lost $1.7 billion in the last quarter... you do the math.

Im guessing then that without these saving measures, Sony really would of went bankrupt, literally....

These savings are for the fiscal year which just started, they don't affect last quarter's numbers.

 


Didn't whatever they do save them yearly? I think it was the merging the suppliers together saves them like 1 billion yearly or something.



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TheSteve on 19 June 2009
NJ5 said:
Taz! said:
NJ5 said:
They lost $1.7 billion in the last quarter... you do the math.

Im guessing then that without these saving measures, Sony really would of went bankrupt, literally....

These savings are for the fiscal year which just started, they don't affect last quarter's numbers.

 


However, if you look at them losing more than half that per quarter, saving it in a year leaves them still in the hole by almost $4billion, if we were just extrapolating.

As to what this looks like to analysts, with Activision/Blizzard talking about pulling support from Sony platforms, I would think it's not exactly a positive.



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NJ5 on 19 June 2009
JEDE3 said:
NJ5 said:
Taz! said:
NJ5 said:
They lost $1.7 billion in the last quarter... you do the math.

Im guessing then that without these saving measures, Sony really would of went bankrupt, literally....

These savings are for the fiscal year which just started, they don't affect last quarter's numbers.

 


Didn't whatever they do save them yearly? I think it was the merging the suppliers together saves them like 1 billion yearly or something.

Read the quote:

"save over JPY 300 billion ($3 billion) in cost reductions in fiscal 2009"

They may have saved some last year in other cost reductions, but the $3 billion refers to the difference between fiscal 2009 expenses and fiscal 2008 expenses.

In other words, if the business environment remained the same this year, Sony would lose a total $3.8 billion in the current fiscal year.

($1.7 * 4 - $3 = $3.8)

 



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Gamerace on 19 June 2009

Don't forget Sony has consistantly overstated projected earnings for 8-9 years straight. Take that 3b figure with a large grain of salt.

But it's great to see they are making positive progress and should be profitable again.



 

psrock on 19 June 2009

why do some of you still find a way to turn this into a bad thing, seriously?



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NJ5 on 19 June 2009
Gamerace said:
Don't forget Sony has consistantly overstated projected earnings for 8-9 years straight. Take that 3b figure with a large grain of salt.

But it's great to see they are making positive progress and should be profitable again.

I think you misread the corporate speak:

I can tell you we believe business is improving -> We have no concrete data saying the business environment is improving, but we hope it's true

we hope to improve shareholder value in the months ahead -> we hope people will believe we're improving and therefore buy our stock

We're working on profit recovery -> we don't expect profits anytime soon, but are working in the direction of profits (of course they are, why wouldn't they)

that's what we're committed to -> of course, it's their job to commit to that

@psrock: I don't think we're saying it's a bad thing... more like, it's probably not enough to get profitable.

 



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