Updated on
Summary The company reported a quarterly loss of 24.6 billion yen ($316 million).
Sonys red ink worsened in the April-June quarter and it lowered its full-year earnings forecast as it battles a strong yen and declining sales of liquid crystal display TVs and video game machines.The Japanese electronics and entertainment company Thursday reported a quarterly loss of 24.6 billion yen ($316 million) compared with a 15.5 billion yen loss a year earlier.Sales edged up 1.4 percent to 1.52 trillion yen ($19.4 billion), helped by cameras, professional broadcasting products and mobile phones.Tokyo-based Sony Corp. lowered its earnings forecast for the business year through March 2013 to a 20 billion yen ($256 million) profit, down from 30 billion yen projected in May, citing uncertainty in foreign exchange rates and global demand.The company said it was hurt in the April-June quarter by a strong yen, which erodes overseas earnings, and by declining sales of liquid-crystal display TVs and video game machines. It also got hit by a 20 billion yen income tax expense, had 11.3 billion yen in restructuring charges for the quarter, and invested heavily in image sensor production.Sony posted a 456.6 billion yen loss in its last business year. That was the fourth straight year of losses and the biggest loss in the 66-year history of the maker of the PlayStation game machines, Spider-Man movies and the Walkman portable.Once the stellar brand symbolizing Japans technological prowess, Sony has lost its shine. It is getting beaten in TVs by South Koreas Samsung Electronics Co. and by Apple Inc. in devices such as the iPhone and iPod.Sonys troubles were exacerbated last year by factory and supplier damage in northeastern Japan from the March earthquake and tsunami.Key to Sonys turnaround is stopping the red ink in its TV business, which has lost money for eight straight years. The losses are expected to continue for the current business year. And it has yet to carve out new areas for profits it has long promised like smartphones and tablet computers.Sony is aiming for a comeback under Kazuo Hirai, appointed president in April, who has headed the companys game division and built his career in the U.S.Sony said that for the latest quarter, TV sales had fallen but operating losses in the division had been trimmed to less than half of what they were the year before.
