Sony Sinks With Further Losses

Sony
Sony has suffered major quarterly losses of 138 billion yen ($1.3 billion) which has resulted after selling its personal computer business. More losses are warned as the Japanese firm struggles to execute a long-promised turnaround.

The Tokyo-based maker of the PlayStation 4 game machine, Bravia TVs and Walkman digital player also reported a loss of 128.4 billion yen ($1.3 billion) for the fiscal year through March 2014, about three times its loss of 41.5 billion yen the previous year.

More bad news is expected as it predicts a 50 billion yen ($490 million) loss for the year ending March 2015 as overall sales are expected to be flat without its Vaio PC business.

Sony had already made it clear that it would report a bigger annual loss than forecast because of expenses that stemmed from selling Vaio, such as restructuring charges and dealing with excess inventory in components.
The PC-related losses are expected to continue this fiscal year, totaling 80 billion yen ($784 million), on top of the 92 billion yen ($900 million) for the fiscal ended March 2014.

The company has also sustained a drop in the value of its overseas disc manufacturing business and its battery business.

Sony has lost much of the market share and has fallen behind in digital recorders and flat-panel TVs while also facing competition from a host of new players that can make appliances at lower costs.
In gadgetry, it is American rival Apple and Samsung Electronics of South Korea that have dazzled with their innovations, not Sony.

In February, Sony announced it would withdraw from the PC business, despite the popularity of the Vaio brand among some Sony fans, especially in Japan.

Sony’s red ink is flowing despite an improvement in sales, which rose 14% to 7.7 trillion yen ($76 billion) for the fiscal year.

Sony grew from modest beginnings in 1946 to a global powerhouse. It expanded into the entertainment business three decades ago, acquiring CBS Records in 1988 and Columbia Pictures in 1989.

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