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Ericsson Mobile Consolidation Helps Stem Sony Earnings Loss

Nov. 1, 2012
Sony

Sony Corp on Thursday logged a net loss of 15.5 billion yen (193.4 million dollars) in the July-to-September quarter because of the yen's strength and stiff competition in consumer electronics.

Sony posted a net loss of 27 billion yen in the same period last year.

Sony booked an operating profit of 30.3 billion yen for the July-to-September period, compared with an operating loss of 1.6 billion yen a year earlier.

The improvement was attributed mainly to 13.2 billion yen from insurance payouts related to damage and losses in the floods in Thailand last year, and 8.2 billion yen from the sale of the chemical-products business.

Sales also edged up 1.8 per cent year-on-year to 1.6 trillion yen primarily due to a "significant increase in sales in the Mobile Products & Communications segment," the company said.

This rise was mainly thanks to the consolidation of Sony Mobile Communications AB, formerly known as Sony Ericsson Mobile Communications AB, as a wholly-owned subsidiary from February 2012.

However, Sony has been struggling with slowing sales of such products as digital cameras and liquid crystal display televisions.

The Japanese consumer electronics maker trimmed its sales outlook for the current financial year, which ends March 31, to 6.6 trillion yen, down 1.6 per cent from its prediction three months ago.

Sony, once known as the world's electronics innovator, has lagged behind its rivals such as Apple Inc and Samsung Electronics Co in producing popular gadgets, resulting in four-straight years of annual losses and a restructuring.




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Source: Copyright 2012 dpa Deutsche Presse-Agentur GmbH


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