Sony Corp drastically lowered profit and sales forecasts for the current fiscal year yesterday, blaming deteriorating sales of flat-panel TVs and other gadgets battered by a global slowdown.
The latest numbers would mean that Sony’s profit for the fiscal year ending next March are set to plunge 59 percent from the previous year.
Tokyo-based Sony now expects a ¥150 billion (US$1.5 billion) profit for the year ending in March, and it gave the unfavorable currency rate as another big reason for the faltering results.
Back in July, Sony had expected to post ¥240 billion in profit for the fiscal year.
Sony, which makes the Walkman portable music player and PlayStation 3 game console, had counted on the dollar trading at about ¥105, but changed that expectation to ¥100.
Fears have been growing about the earnings of major Japanese companies scheduled to announce results in the next few weeks.
The benchmark for the Tokyo stock market lost 2.5 percent yesterday because of such worries.
The financial credit crisis, which began in the US, is expected to weigh on exporters like Sony, which rakes in more than half its sales in North America and Europe.
“Consumer spending will likely slow significantly across the globe and the stronger yen will weigh on company earnings,” said Yoji Takeda, who helps manage US$1.1 billion at RBC Investment (Asia) Ltd in Hong Kong. “The impact on Japanese exporters is substantial.’’
Sony also lowered its sales forecast for the year to ¥9 trillion from the previous ¥9.2 trillion, although that marks a 1 percent improvement from the previous fiscal year.
Sony said in a statement that it expects lower profits in its electronics business because of falling sales of liquid-crystal- display TVs, digital cameras and video camcorders.
Price drops from intense competition also hurt the numbers, Sony said.
The plunge on the Japanese stock market has also eroded the gains Sony is getting from equity and bond investments, the company said. But Sony said results are in line with previous expectations in its gaming and movies division.
Sony said it expects to post a ¥21 billion profit for the July to September period, down 72 percent from ¥73.7 billion for the same period last year. Sales are expected to inch down 1 percent year on year to ¥2.07 trillion, it said.
Sony is to release second quarter earnings next week.
DETERRENCE: With 1,000 indigenous Hsiung Feng II and III missiles and 400 Harpoon missiles, the nation would boast the highest anti-ship missile density in the world With Taiwan wrapping up mass production of Hsiung Feng II and III missiles by December and an influx of Harpoon missiles from the US, Taiwan would have the highest density of anti-ship missiles in the world, a source said yesterday. Taiwan is to wrap up mass production of the indigenous anti-ship missiles by the end of year, as the Chungshan Institute of Science and Technology has been meeting production targets ahead of schedule, a defense official with knowledge of the matter said. Combined with the 400 Harpoon anti-ship missiles Taiwan expects to receive from the US by 2028, the nation would have
POSSIBILITIES EMERGE: With Taiwan’s victory and Japan’s narrow win over Australia, Taiwan now have a chance to advance if South Korea also beat the Aussies Taiwan has high hopes that the national baseball team would advance to the World Baseball Classic (WBC) quarter-finals after clinching a crucial 5-4 victory over South Korea in a nail-biting extra-inning game at the Tokyo Dome yesterday. Boosted by three home runs — two solo shots by Yu Chang (張育成) and Cheng Tsung-che (鄭宗哲) and a two-run homer by Stuart Fairchild — the triumph gave Taiwan a much-needed second victory in the five-team Pool C, where only the top two finishers would advance to the knockout stage in Miami, Florida. Entering extra innings with the game tied at four apiece, Taiwan scored
MISSION OF PEACE: The foreign minister urged Beijing to respect Taiwan’s existence as an independent nation, and work together to ensure peace and stability in the region Minister of Foreign Affairs Lin Chia-lung (林佳龍) yesterday rejected Chinese Minister of Foreign Affairs Wang Yi’s (王毅) comments about Taiwan, criticizing China as a “troublemaker” in the international community and a disruptor of cross-strait peace. Speaking at a news conference on the sidelines of the Chinese National People’s Congress, Wang said that Taiwan has always been a territory of China and that it would be impossible for it to become its own country. The “return” of Taiwan to China was the natural outcome of the Chinese people’s resistance against Japan in World War II, and that any pursuit of independence was “doomed
‘UNWAVERING FRIENDSHIP’: A representative of a Japanese group that co-organized a memorial, said he hopes Japanese never forget Taiwan’s kindness President William Lai (賴清德) yesterday marked the 15th anniversary of the Tohoku earthquake and tsunami, urging continued cooperation between Taiwan and Japan on disaster prevention and humanitarian assistance. Lai wrote on social media that Taiwan and Japan have always helped each other in the aftermath of major disasters. The magnitude 9 earthquake struck northeastern Japan on March 11, 2011, triggering a massive tsunami that claimed more than 19,000 lives, according to data from Japanese authorities. Following the disaster, Taiwan donated more than US$240 million in aid, making it one of the largest contributors of financial assistance to Japan. In addition to cash donations and
RSS