Sony Reports Quarterly Loss, Cuts LCD TV Sales Forecast

By Erin Harrison November 02, 2011

Sony Corp. is not having a good week – make that quarter.

After reporting a 27 billion yen loss ($350 million) for the second quarter, the Japanese electronics company cut its annual LCD TV sales forecast on Wednesday by 9 percent to 20 million units from 22 million units, according to media reports.

Reuters said Sony also cut its compact digital camera sales forecast to 23 million units from 24 million units for the year ending in March.

Sony reported sales of 1,575 billion yen ($20.5 million), a decrease of 9.1 percent compared to the same quarter of the previous fiscal year. Sony officials attributed the drop “to unfavorable foreign exchange rates and a decrease in sales in the CPS segment, which was mainly affected by a decrease in sales of LCD televisions,” according to a statement released Nov. 2.

Sony officials attributed damage from the March 2011 floods as negatively impacting its business operations, even delaying some product launches.

“Due to direct damage from inundation of Sony’s manufacturing facilities and difficulty in procuring parts and components resulting from the floods, Sony’s business operations are being negatively impacted primarily due to temporary cessation of production at several manufacturing facilities and postponement of certain product launches,” company officials said in a statement.

The Tokyo-based electronics giant reported an operating loss of 1.6 billion yen ($21 million) compared to operating income of 68.7 billion yen in the same quarter of the previous fiscal year. 

“This was mainly due to a decrease in gross profit due to lower sales, an asset impairment associated with the anticipated sale of the small- and medium-sized display business, and the impairment of LCD television assets,” according to Sony’s earnings release.

Sony also said it was assuming exchange rates of 105 yen to the euro and 75 yen to the dollar in the October-March fiscal second half.

Consolidated sales for the fiscal year ending March 31, 2012 are expected to be 6,500 billion yen, significantly below the July forecast, company officials said.


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TechZone360, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Rich Steeves

Executive Editor, Strategic Initiatives

SHARE THIS ARTICLE
Related Articles

CES 2018: Terabit Fiber - Closer Than We Think

By: Doug Mohney    1/17/2018

One of the biggest challenges for 5G and last mile 10 Gig deployments is not raw data speeds, but middle mile and core networks. The wireless industry…

Read More

10 Benefits of Drone-Based Asset Inspections

By: Frank Segarra    1/15/2018

Although a new and emerging technology, (which is still evolving), in early 2018, most companies are not aware of the possible benefits they can achie…

Read More

VR Could Change Entertainment Forever

By: Special Guest    1/11/2018

VR could change everything from how we play video games to how we interact with our friends and family. VR has the power to change how we consume all …

Read More

Making Connections - The Value of Data Correlation

By: Special Guest    1/5/2018

The app economy is upon us, and businesses of all stripes are moving to address it. In this age of digital transformation, businesses rely on applicat…

Read More

3 Ways to Improve Your VR Projects

By: Ellie Martin    1/4/2018

There is no denying that VR is here and will most likely only increase in velocity as a terminal speed is yet to be even hypothesized. That is why it …

Read More