Sony warns of deeper loss as it exits PC businessThursday 01 May 2014 15.33
Sony warned today it would report a bigger-than-expected annual loss, blaming costs tied to its exit from the personal computer business, as the once-mighty firm undergoes a painful restructuring.
The Japanese electronics giant said it would book a 130 billion yen net loss in the latest fiscal year to March, while it slashed its operating earnings outlook.
The figure is worse than a 110 billion yen net loss forecast just three months ago, when Sony also announced it would cut 5,000 jobs in its struggling computer and television units.
Today, Sony said it now expected to record 30 billion yen in additional expenses owing to its move out of personal computers, and 25 billion yen in impairment charges tied to its overseas production of Blu-ray discs, DVDs and CDs.
Sony reports its financial results later this month.
Operating profit in the latest fiscal year would be down 89% from the previous year, although sales were expected to jump about 14% to 7.77 trillion yen, it said.
PC sales got worse after its February profit warning. The company also expects to record write-downs for excess components in inventory and accrual of expenses to compensate suppliers for unused components ordered for Sony's spring PC lineup.
Sony, which is a small player in the global personal computer market, is selling its Vaio-brand PC division to a Japanese investment fund as it looks to concentrate on its lineup of smartphones and tablets.
After suffering four years of losses, Sony crept back into the black in the previous fiscal year. This was mostly due to a weak yen and asset sales, including the firm's US headquarters in Manhattan.