Sony Posts Higher Sales, Operating ProfitsTokyo – Sony Electronics reported higher net sales, an operating profit and lower net loss in its fiscal third quarter, but TV and video game sales were still down. 2/07/2013 05:24:00 AM Eastern
Tokyo – Sony Electronics reported higher net sales, an operating profit and lower net loss in its fiscal third quarter, but TV and video game sales were still down.
Sales were 1,948 billion yen ($22.4 billion) in its quarter, ended Dec. 31, 2012, an increase of 6.9 percent year on year, but sales decreased significantly primarily in the home entertainment and sound segment, resulting from a decrease in LCD television unit sales, and in the game segment.
Operating income of 46.4 billion yen ($534 million) was recorded, compared with an operating loss of 91.7 billion yen year on year. This improvement was primarily due to a 63.4 billion yen impairment loss on the shares of S-LCD Corporation, which was sold in January 2012.
The net loss decreased 148.2 billion yen year on year to 10.8 billion yen ($124 million).
In the home entertainment and sound segment, sales decreased 17.9 percent year on year to 323.8 billion yen ($3.72 billion), and this was primarily due to a drop in LCD television unit sales.
TV sales decreased 23.3 percent year on year to 182.7 billion yen ($2.1 billion), and operating loss decreased 86.6 billion yen year on year to 14.7 billion yen ($169 million).
The entire segment’s operating loss decreased 81.8 billion yen year on year to 8 billion yen ($92 million).
In the mobile products and communications segment, sales increased 94.4 percent year on year to 318.8 billion yen ($3.7 billion). This increase was primarily due to the consolidation of Sony Mobile from February 2012, partially offset by significantly lower sales of PCs resulting from a decline in unit sales.
On a pro forma basis, had Sony Mobile been fully consolidated in the same quarter of the previous fiscal year, segment sales would have increased approximately 10 percent. This was due to an increase in sales of mobile phones primarily resulting from higher average selling prices, reflecting a product portfolio shift to smartphones from feature phones, and higher unit sales of smartphones, being partially offset by significantly lower sales of PCs, Sony said.
The operating loss decreased 27.1 billion yen year on year to 21.3 billion yen ($245 million). This improvement was primarily due to the 33 billion yen valuation allowance on certain deferred tax assets of Sony Ericsson included within equity in net loss of affiliated companies in the same quarter in the previous fiscal year.
In the game segment, sales decreased 15.1 percent year on year to 268.5 billion yen ($3.09 million). Overall segment sales decreased significantly due to lower sales of hardware and software of the PlayStation3 and PlayStation Portable partially offset by the sales of the PlayStation Vita introduced in December 2011.
Operating income decreased 29.2 billion yen year on year to 4.6 billion yen ($53 million). This decrease was primarily due to the above-mentioned decrease in sales of PS3 software and PSP hardware, Sony said.