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.
Executive Editor, Strategic Initiatives
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