Tuesday, 24 May 2011

Sony predicts annual loss of $3.2bn!

I will chose Sony over Apple every time and so I am genuinely upset that Sony have been hit so hard due to so many factors!

Analysis by the Guardian suggests that the Japanese electronics giant Sony's fourth quarter ending in March was one of its worst sales quarters in 11 years and that it will announce a ¥73bn (£554m) operating loss for the period.

The figures emerged after the company warned that on Thursday it will announce a loss for the fiscal year of ¥260bn.
It said the loss was largely due to writing off $4.4bn related to a tax credit booked in a previous quarter.

The firm has been hit recently by March's earthquake and tsunami, and a series of computing hacking attacks.
The earthquake and tsunami on 11 March hit plants in north-east Japan, which affected the firm's supply chain, and in the wider economy led to fall in consumer spending.

Sony is aiming to have resolved the hacking issues that caused the shutdown of its PlayStation Network by the end of May.

Cyber attacks involved the theft of personal data that included names, passwords and addresses from more than 100 million accounts.

It now says said the data breach will result in a $170m drain, at least, on operating profits in terms of insurance and damages costs. 

The annual net loss will be Sony's second-largest ever, underscoring the decline of a company that was once seen as a symbol of Japan's electronic and manufacturing excellence.

"I have been sceptical about Sony for a long time. Sony has been overtaken by Apple and other companies," said Yuuki Sakurai, chief executive and president of Fukoku Capital Management in Tokyo. "The management is not able to show shareholders the future of the company."

Sony announced the loss ahead of its official earnings announcement due on Thursday under Tokyo Stock Exchange guidelines.

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