Sony Revise Forecasts News
Jon Wilcox
19/10/2006
End of year figures drop dramatically across Sony Corp as a result of battery recalls and the PlayStation3 effect...
Ahead of their second quarter results, which are due for release on October 26th, Sony Corporation has today announced a revision of its financial forecasts for the end of the fiscal year on March 31st 2007.
Whilst sales and revenue for the company are expected to remain unchanged from their original forecast in July 2006, standing at 8,230 billion Yen (£37.1 billion), both operating and net incomes have now been projected to take a hit of 62% and 38% respectively. Operating income is now expected to reach 50 billion Yen (£225.4 million), down from 130 billion Yen (£586.2 million), whilst net income is expected to be 80 billion Yen (£360.7 million), also down from 130 billion Yen (£586.2 million).
Primarily citing the mass-recall of batteries for Dell, Apple, and Lenovo, which Sony has put a provision of 51 billion Yen (£230.0 million), the company also confirmed that the price reduction of PlayStation 3 in Japan, coupled with lower than expected sales of PSP, have also brought on today's announcement. Additionally, the electronics division is expected to take a further hit thanks to the diversion of parts in order to produce as many PlayStation3 units as possible in the run up to the system's Japanese and North American launches in November.
Expectations for the second quarter results, which ended on September 30th, are expected to show an operating loss of 21 billion Yen (£94.7 million), though the figures won't be confirmed until October 26th.
Sony does however expect an improvement in results for the 2008 fiscal year.
We'll have more news shortly...