This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/technology/2012/apr/10/sony-doubles-full-year-losses

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Sony doubles forecast for full-year losses Sony doubles forecast for full-year losses
(40 minutes later)
Sony Corp flagged a record $6.4bn (£4bn)annual net loss, double an earlier forecast and a fourth straight year of red ink, as it writes off deferred tax credits, heaping more pressure on its new CEO to turn around the electronics giant. Sony Corp flagged a record $6.4bn (£4bn) annual net loss, double an earlier forecast and a fourth straight year of red ink, as it writes off deferred tax credits, heaping more pressure on its new chief executive to turn around the electronics giant.
Sony, which plans to axe 10,000 jobs - around 6% of its global workforce - according to media reports this week, has been hammered by weak demand for its televisions and overtaken by more innovative gadget rivals such as Apple and Samsung. Sony, which plans to axe 10,000 jobs – around 6% of its global workforce – according to media reports this week, has been hammered by weak demand for its televisions and overtaken by more innovative gadget rivals such as Apple and Samsung.
Yet, in a bid to ease investor concerns over its deteriorating bottom line, Sony forecast it would bounce back in the current year to the end of March 2013 with an operating profit of ¥180bn. Yet, in a bid to ease investor concerns over its deteriorating bottom line, Sony forecast it would bounce back in the current year to the end of March 2013 with an operating profit of ¥180bn (£1.4bn).
In a sign that Sony's woes are industry-wide among Japan's consumer electronics firms, LCD TV maker Sharp on Tuesday also raised its full-year net loss forecast - to ¥380bn from ¥290bn. In a sign that Sony's woes are industry-wide among Japan's consumer electronics firms, LCD TV maker Sharp on Tuesday also raised its full-year net loss forecast – to ¥380bn from ¥290bn.
Kazuo Hirai, who took over as Sony's CEO this month, has said he is prepared to take "painful steps" to revive the company, insisting he would not hesitate to scale back or withdraw from businesses he deemed uncompetitive. He will lay out his revival strategy in more detail at a briefing scheduled for Thursday. Kazuo Hirai, who took over as Sony's chief executive this month, has said he is prepared to take "painful steps" to revive the company, insisting he would not hesitate to scale back or withdraw from businesses he deemed uncompetitive. He will lay out his revival strategy in more detail at a briefing scheduled for Thursday.
The Sony veteran, known for reviving the PlayStation gaming operations through aggressive cost-cutting, has promised to get the struggling TV business - which has lost $10bn alone in 10 years - back on its feet within two years. The Sony veteran, known for reviving the PlayStation gaming operations through aggressive cost-cutting, has promised to get the struggling TV business – which has lost $10bn in 10 years – back on its feet within two years.
"There have been several reasons for our poor results," chief financial officer Masaru Kato said at a news briefing in Tokyo on Tuesday, noting a strong yen and poor demand."There have been several reasons for our poor results," chief financial officer Masaru Kato said at a news briefing in Tokyo on Tuesday, noting a strong yen and poor demand.
Asked whether the ballooning losses would cause heads to roll among Sony executives, Kato said: "We are aiming for a rebound and for this we have made management changes."Asked whether the ballooning losses would cause heads to roll among Sony executives, Kato said: "We are aiming for a rebound and for this we have made management changes."
Sony stock has almost halved in little more than a year, and has dropped 11% in the past 10 trading sessions.Sony stock has almost halved in little more than a year, and has dropped 11% in the past 10 trading sessions.
In a fourth revision to its annual estimates, Sony forecast a ¥520bn net loss for the year to end of March 2012. In February it had forecast an annual net loss of ¥220bn. The annual results are due on 21 May.In a fourth revision to its annual estimates, Sony forecast a ¥520bn net loss for the year to end of March 2012. In February it had forecast an annual net loss of ¥220bn. The annual results are due on 21 May.
The additional loss is from writing off ¥300bn of deferred tax assets primarily in the United States.The additional loss is from writing off ¥300bn of deferred tax assets primarily in the United States.
The company maintained its February forecast for a ¥95bn annual operating loss.The company maintained its February forecast for a ¥95bn annual operating loss.
"To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but a lot of talent left under early retirement plans," said Tetsuru Ii, president of Commons Asset Management, who oversees about ¥2.7bn worth of assets and does not hold Sony stock."To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but a lot of talent left under early retirement plans," said Tetsuru Ii, president of Commons Asset Management, who oversees about ¥2.7bn worth of assets and does not hold Sony stock.
"The old Sony culture would only allow it to make things that were the best globally. Under that logic, does it make sense to continue its TV business, when it's not even the market leader in Japan?""The old Sony culture would only allow it to make things that were the best globally. Under that logic, does it make sense to continue its TV business, when it's not even the market leader in Japan?"
Kato, who would not confirm the reports of job losses other than to note there would be cuts in a chemical business and small LCD unit that are being hived off, said Sony had no plans to raise money through a share offering or other equity finance.Kato, who would not confirm the reports of job losses other than to note there would be cuts in a chemical business and small LCD unit that are being hived off, said Sony had no plans to raise money through a share offering or other equity finance.