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Sony Reports Higher Q1 CE Sales, Profits

7/27/2006 10:38:00 AM Eastern

Tokyo — Sony reported consumer electronics sales of $11.1 billion and profits of $412 million in its fiscal first quarter thanks to sales of its BRAVIA LCD TVs, Cyber-shot digital cameras and VAIO PCs

The $412 million operating income for the quarter was a dramatic turnaround from an approximate $230 million loss for the same quarter last year. The company said this was due to an increase in sales to outside customers, as well as favorable foreign exchange rates, although this was partially offset by an increase in loss on sale, disposal or impairment of fixed assets, the company said.

The game-area sales were $1.065 billion, down 32 percent on a local currency basis vs. the first quarter of last year, with an operating loss of $233 million vs. a loss of over $50 million vs. last year. The sales decrease and operating loss were blamed on the charges associated with preparation for the launch of the PS3 game platform, in addition to higher R&D costs. PS2 shipments were down around 1 million units during the quarter, to 2.54 million, and PSP shipments were down around 70,000 units, to 2.02 million units.

Sony’s consolidated sales and operating revenue for the first quarter was $15.2 billion, an 11.2 percent increase, and net income was up $281 million vs. an approximate net loss of over $60 million for last year’s opening quarter.