Sony Corp and Toshiba Corp fell in Tokyo trading after media reports the companies would record operating losses this fiscal year because of worsening electronics and chip operations.
Sony tumbled 8.9 percent to close at ¥2,000 on the Tokyo Stock Exchange, its steepest decline since Nov. 6.
Toshiba fell 8.6 percent to ¥385, the biggest drop since Oct. 24. The benchmark Nikkei 225 Stock Average slid 4.8 percent.
PHOTO: EPA
Falling sales of electronics including televisions in North America and Europe could push Sony’s operating loss to about ¥100 billion (US$1.1 billion) in the 12 months ending on March 31, the Nikkei Shimbun reported yesterday, without citing anyone.
The deficit, Sony’s first from operations in 14 years, compares with a ¥200 billion profit the company forecast in October.
“The numbers look about right when one considers the severity of the sales slump since October” at Sony, said Kazuharu Miura, an analyst at Daiwa Institute of Research Ltd in Tokyo.
Miura has a “neutral” rating on Sony.
Sony said in a statement to the Tokyo Stock Exchange that the forecast was not based on any announcement by the company and declined further comment.
Falling sales and the yen’s gains against the US dollar forced Sony last month to announce plans to cut 16,000 positions and curb investment in its mainstay electronics business by 30 percent from an original plan.
Sony president Ryoji Chubachi in an interview on Jan. 6 described the environment for year-end sales as “severe” and said the company could miss its 16 million unit sales target for liquid-crystal-display TVs for the year ending on March 31.
Toshiba will post its first operating loss in seven years in the 12 months to March 31 because of worsening chip operations, public broadcaster NHK reported yesterday, citing people familiar with the situation.
The deficit will be about ¥200 billion, Nikkei English News reported, without saying where it obtained the information.
“We are evaluating the impact of significant changes in our business environment, and will quickly announce any change to our earnings forecasts, if needed,” Toshiba said in a statement to the Tokyo Stock Exchange.
Toshiba in October forecast operating profit, or sales minus the cost of goods sold and administrative expenses, will decline 37 percent to ¥150 billion in the year ending on March 31.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS