TOKYO: Japanese electronics giant Sony reported an 8.6 percent slide in quarterly profit on Thursday, as the strength of the yen and falling LCD TV prices cast a shadow over its earnings. The maker of Bravia televisions and Cyber-shot cameras also cautiously maintained an earlier annual profit forecast and revised its revenue outlook slightly lower for the year.
With the majority of its sales generated outside Japan, Sony has found itself exposed to the recent strength of the yen, which makes products more expensive overseas and erodes profits when repatriated. In addition, electronics makers such as Sony are finding the flat screen television market challenging as heavy competition forces prices down, squeezing margins.
Sony reported a net profit of 72.3 billion yen for the fiscal third quarter ended December, or $893 million based on its average exchange rate for the period, which beat analysts expectations of a 66 billion yen profit. But it was below the 79.2 billion yen posted in the same period a year earlier.
Sony also maintained its profit forecast for the year at 70 billion yen. Under chief executive and president Howard Stringer, the company has streamlined operations and cut costs to pare the sprawling group, which was battered by the global downturn.The electronics giant has been forced to undergo major restructuring slashing thousands of jobs, selling facilities and turning to suppliers for parts after seeing losses pile up as the financial crisis hit demand.The company maintained its earlier forecast of an operating profit of 200 billion yen but trimmed its revenue forecast to 7.2 trillion yen from 7.4 trillion previously.Sony shares closed 0.73 percent higher in Tokyo trade Thursday ahead of the earnings announcement.
Comments
Comments are closed for this article.