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Sony quarterly loss on weak sales | |
(30 minutes later) | |
Sony, set to make its first annual loss in 14 years, has reported a quarterly loss as weak sales of goods and a stronger yen have taken their toll. | |
The firm reported an operating loss of 18bn yen ($200m; £141m) for the October to December third quarter, down from 236.22bn yen profit a year before. | |
The broader global recession has hit consumer demand for its products. | |
Nintendo is set to give its quarterly results too, giving a further indicator of the state of Japan's economy. | |
Japanese firms have dominated the electronics business for decades, but are now suffering. | Japanese firms have dominated the electronics business for decades, but are now suffering. |
Exporters are struggling from falling worldwide demand for their products. | Exporters are struggling from falling worldwide demand for their products. |
They have also been hit by a strong yen which currently makes it harder to compete against rivals from countries such as South Korea. | |
Last week Sony has said it was going make its first annual loss in 14 years as the global economic slowdown hits demand for its products. | |
On Thursday it reiterated its latest forecast of a record 260bn yen operating loss for the year to 31 March. | |
Sony is taking restructuring steps including cutting 16,000 jobs and closing five or six plants. | |
One bright spot for the electronics industry has been Nintendo. | |
Its Wii Console and DS handheld device have no real rivals and unconventional games billed as improving fitness or mental agility have wide appeal. | Its Wii Console and DS handheld device have no real rivals and unconventional games billed as improving fitness or mental agility have wide appeal. |
But overall Japanese exports were down 35% in December, compared to a year earlier, with factories cutting production and laying off workers. | |
Japan's Prime Minister Taro Aso has told parliament he will take bold steps to make his the first country to emerge from the global crisis. | Japan's Prime Minister Taro Aso has told parliament he will take bold steps to make his the first country to emerge from the global crisis. |
Mr Aso is struggling against poor approval ratings - regularly hitting new lows in the popularity stakes - ahead of a general election due later this year. |