Sony slashes losses, predicts sales recovery


Sony has managed to cut its net loss to 40.8 billion yen (298.8 million) in the past year, down from 98.9 billion yen (724.3 million).

Its operating income, meanwhile, made an improvement of 259.6 billion yen for the fiscal year ended March 31, when compared to the year before when the firm experienced a loss.

Despite Sony's improved performance, the Japanese electronics giant saw its sales and operating revenue fall 6.7 per cent, while its sales in the consumer products and devices (CPD) segment dropped by almost a fifth.

As for the Sony Ericsson business, sales fell by 37.2 per cent year-on-year, a result blamed on difficult market conditions in all regions.

This is despite the mobile organisation reporting 21 million (18.5 million) in profit for the first three months of 2010, compared to losses of 167 million in the previous quarter.

Sony has now forecast a significant rise in sales in the CPD segment, with operating income expected to be reported rather than a loss. The firm believes its television business and structural transformation projects will help boost performance in this area.

Sales of VAIO PCs, digital readers and network services are also projected to go up, even though the networked products and services segment also took a hit over the past year.

In the coming months, Sony is planning to launch a range of 3D-related products and network services, along with other new businesses, which went unnamed in the company's financial results.

Tom Brewster

Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.

He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.