Sony cuts profit forecast in half

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Consumer electronics giant Sony has cut its forecast for annual operating profits by 57%, blaming the stronger yen and tough price competition.

Operating profits are now expected to be 200bn yen ($2bn; Â£1.25bn) for the year to March 2009, down from an earlier forecast of 470bn yen.

For the three months to end-September, it reported net income of 21bn yen, down from 73.7bn yen a year earlier.

Japanese exports have been hit by a stronger yen and a slowdown in the US.

Sony has also been bruised by price competition in the LCD, digital camera and camcorder market.

The company said that annual net profits were now expected to be 150bn yen, down from an earlier estimate of 240bn yen.

Before the announcement, shares in Sony had fallen 6.3% to close at 2,295 yen.