Sony sees sharp profit fall
July 31, 2008
Sony has announced that their quarterly profits have dropped by almost half. It is thought that the Sony have been hit by losses at Ericsson, who they are joint with in mobile phone ventures.
Sony said that net profit totaled 35bn Yen (£163m) in the April to June period. This is down from 66.5bn Yen for the same period last year.
The makers of the PlayStation have been shaken by a strong Yen and tough price comparison. Although Sony insists PlayStation sales are still strong.
The Japanese firm has cut its annual profits forecasts. Sony has said its net profit in the year to March 31 2009 will be 240bn Yen which is down from 290bn Yen forecast made in May.
A fund manager at Chibagin Asset Management, Hiroaki Osakabe said “Games have recovered well - that’s positive. But movies aren’t good. Then Sony Ericsson is really a drag”.
They also said they expect weaker results from the Sony Ericsson mobile phone partnership, which has seen a drop in demand for its more expensive handsets.
Electronics makers in Japan such as Toshiba and Mastushita, the company behind Panasonic, have had to deal with economic downturn in the US, higher fuel and raw material costs, and a stronger Yen. However the Japanese currency has begun to weaken recently.
See www.sony.co.uk or www.sony.com for more information on the company and their products.
Comments
Got something to say?
Advertisement