twice connect
careers

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.
Want to read more stories like this?
Get our Free Newsletter Here!

Curated By Logo