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Sony falls to 30 year low

May 11, 2012

Sony shares have slumped to a 31-year low, a day after the company reported a record annual loss of 456.7 billion yen ($5.7bn). Sony shares fell as much as 6.7 per cent to 1,132 yen on the Tokyo Stock Exchange. Sony,  which has been making a loss for each of the past four years, has forecast that it will return to profit in the current financial year.

Its TV business, one of its biggest growth drivers in the past, has been hit hard by increased competition and falling prices. The division has been making losses for eight years in a row.  The company has also lost ground to rivals in the gaming and mobile phone business.

Sony has also had to deal with rising costs and a strong Japanese currency which have also hurt its earnings.
Earlier this year, the newly elected president and chief executive, Kazuo Hirai, announced that the firm would cut 10,000 jobs as part of a major reorganisation.

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