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Manu Fernandez/AP/Press Association Images
Pressure
Sony braces itself for major losses by slashing profit estimates
The electronics giant has slashed its expected income from €563 million to €183 million, a 67.5 per cent decrease, after disc market shrinks faster than expected
SONY IS WARNING investors and shareholders that its financial results for this fiscal year ended 31st March 2014 will be poorer than expected.
The company originally expected to pull in an operating income of 80 billion yen (€563 million) but has reduced this to 26 billion yen (€183 million), a 67.5 per cent decrease from its February forecast.
The company pointed towards two primary factors for this revised forecast. The first was Sony exiting the PC market, causing it to add approximately 30 billion yen (€211 million) in what it described as “additional expenses.”
Sony originally announced it would be exiting the PC market in February, selling it off to a Japanese investment fund, so it could focus on mobile.
The other is the demand for physical media, such as Blu-ray, falling faster than the company expected. This means Sony won’t be generating enough revenue from that sector to cover costs, meaning it expects to record 25 billion yen (€176 million) in impairment charges.
Sony is expected to announce the actual results of its fiscal year on 14th May 2014.
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