By Vikram Sethi
Sony had estimated a 60 billion yen net profit, but thinks it will have a 90 billion yen net loss (0ver $1 billion) in the current fiscal year instead. The electronics major also reported a loss of 27 billion yen for the JAS quarter. The company’s U.S sales declined by 12 per cent over the quarter.
Sony shares plummeted down by over 6 per cent at the announcement. While it was being predicted that Sony would revise its profit guidance, the company reporting such vast losses came as a surprise to investors and analysts. The loss will make 2011 Sony’s fourth year of loss-making.
Sony is not the only electronics company in the world to be going through a rough patch. Compatriots Philips and Panasonic for example, are also struggling. The electronic giants are having a tough time moving their high-end products (the likes of LCD TVs). Natural calamities like the earthquake in Japan, and now the flooding in Thailand, have also been affecting business, as the component supply chain has tended to become erratic in the wake of the disasters. In the case of Sony, the flooding has led to a loss of around 25 billion yen.