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Sony Posts Profit, Higher Sales In Quarter

10/29/2010 01:22:47 PM Eastern
Tokyo - Sony reported a net profit and sales increase in its fiscal second quarter ended Sept. 30.

Sales were up 4.3 percent in yen to 1,733.2 billion yen ($20.8 billion) compared with the prior year's fiscal second quarter. The net income of 20.7 billion yen ($755 million) is in comparison to the 26.22 billion yen loss year on year.

Sales were up in all areas except its music business. Sony had to contend with higher exchange rates, with the yen appreciating against the U.S. dollar by 9.2 percent compared with the prior year's third quarter.

By business segment in Consumer, Professional & Devices, sales increased 1.4 percent year-on-year (an 11 percent increase on a local currency basis) to 885.3 billion yen ($10.7 billion) Sales to outside customers increased 3.4 percent year-on-year due to an increase in LCD television sales resulting from increased unit sales.

Operating income increased by 10.3 billion yen year-on-year to 16.9 billion yen ($203 million). This was driven primarily by an increase in gross profit due to higher sales, an improvement in the cost of sales ratio and a decrease in restructuring charges, Sony said.

Categories which unfavorably impacted the change in segment operating results include LCD TVs, reflecting a decline in unit selling prices despite rising unit sales, and video cameras, reflecting lower sales.

Networked Products and Services' sales increased 5 percent year-on-year (a 16 percent increase on a local currency basis) to 369.1 billion yen ($4.5 billion). Sales to outside customers increased 2.2 percent year-on-year. This was mainly due to an increase in PC sales brought on by increased unit sales, which resulted from expanding market share in all regions driven by enhanced product appeal, Sony said.

While game business sales in total decreased year-on-year, sales of PlayStation3 hardware and software increased year-on-year and benefited from the introduction of PlayStation Move in the current quarter.

Operating income of 6.9 billion yen ($84 million) was recorded in the current quarter, compared to a loss of 59.0 billion yen in the same quarter of the previous fiscal year. Categories which favorably impacted the change in segment operating results include the game business, reflecting the strong performance of PS3 resulting from significant hardware cost reductions and higher sales, and PCs, resulting from the increase in sales.
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