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Sony reports further losses as Thai floods hit sales | Sony reports further losses as Thai floods hit sales |
(40 minutes later) | |
Japanese electronics giant Sony has reported another quarterly loss after sales were hit by lower production following the floods in Thailand. | Japanese electronics giant Sony has reported another quarterly loss after sales were hit by lower production following the floods in Thailand. |
The company reported a net loss of 159bn yen ($2.1bn; £1.3bn) for the final three months of 2011, compared with a profit of 72bn yen a year earlier. Sales fell 17% to 1.8tn yen. | The company reported a net loss of 159bn yen ($2.1bn; £1.3bn) for the final three months of 2011, compared with a profit of 72bn yen a year earlier. Sales fell 17% to 1.8tn yen. |
The firm also blamed weaker demand and the strong yen for the loss. | The firm also blamed weaker demand and the strong yen for the loss. |
It also forecast a loss for the financial year of 220bn yen. | It also forecast a loss for the financial year of 220bn yen. |
In November, Sony had predicted an annual loss of 90bn yen. | In November, Sony had predicted an annual loss of 90bn yen. |
Analysts were unimpressed with the results. | |
"Sony's earnings were worse than I had imagined," said Hisashi Kuroda at Meija Yasuda Asset Management. | |
"Sony has few businesses that have value. The only hope is, perhaps, film and music, or whether they can make a recovery in the game business - basically software business - not the hardware one." | |
New leadership | |
The company has struggled in recent years, particularly at its TV division, which has lost money for the past seven years. | |
It has been hit by price falls, an oversupply of panels, and intense competition and innovation in the electronics market, analysts say. | |
On Wednesday, Sony announced that its chief executive, Sir Howard Stringer, would step down from the job on 1 April, to be replaced by vice president Kazuo Hirai. Sir Howard will stay on as chairman. | |
"It won't be easy for Sony to regain its lost ground under new leadership, as its overall competitiveness has sharply weakened," said Kim-young Chan at Shinhan Investment. | |
"It's got structural problems that will take years to fix." |
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