Sony Corp’s new boss, Kazuo Hirai, has enjoyed something of a honeymoon period this past year as he restructured many divisions and attempted to curb the company’s historic losses. It now look as if he has a lot more work to do, as Sony issued a profit warning early on February 6th.
Sony now expects an annual loss this year of about $1.1 billion, and is expected to trim another 5,000 jobs, including selling off its Vaio computer division. The operating income will be (at Yen 80 billion) significantly less than the Y170 billion anticipated only last October. Sales revenues are expected to be about Y7.7 trillion.
Sony’s net loss this year will total Yen110 billion to March 31st. Its TV division will report its 10th year of losses, which Sony says will be spun off to a stand-alone business.
Sony’s share of global TV revenue fell to 7.5 per cent in the third quarter last year from 8.1 per cent the previous quarter, according to recent data from NPD’s DisplaySearch division. Sony ranked third, following Samsung and LG.