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Sony Forecasts Worst Ever Annual Loss

4/10/2012 11:28:02 AM Eastern

Tokyo - Sony Tuesday forecast
a $6.4 billion annual loss, the worst in its history, due in part to a massive
tax charge.

The Japanese electronics giant said it would take a write down of
$3.7 billion on the value of deferred tax assets as its losses exceed previous
forecasts for the fiscal fourth quarter ending March 30.

The non-cash charge stemmed from revaluing U.S. tax credits that
are unlikely to be used in light of its string of annual losses.

In February, it had projected an annual net loss of $2.7 billion due
in part to weakened TV sales, the strong yen and production disruptions from
flooding in Thailand.

The company said its $1.2 billion operating loss forecast was
unchanged, and forecast a return to profitability in the year through March
2013.

Japanese news reports on Monday said new CEO Kaz Hirai would cut
about 10,000 jobs worldwide over the next year in an effort to turn the losses
around. Sony is now facing its fourth year of red ink.

Hirai is scheduled to outline the company's new corporate
strategy on Thursday.

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