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Sony Reports Wider Loss, Lower Sales

5/26/2011 11:33:41 AM Eastern
Tokyo - Sony reported a wider net loss and lower sales for its fiscal year and fourth quarter, both which ended March 31.

The net loss for the year was $3.12 billion (259.6 billion yen) higher than the 40.8 billion yen loss of the prior year, as Sony indicated when it projected these numbers in a report on Monday.

Operating income for the year was $2.407 billion or 199.8 billion yen, up 168 billion yen year-on-year.

Sales were 7.18 trillion yen, or $86.5 billion, down 5 percent from the prior year.

In the fourth quarter the net loss was $4.68 billion or 388.8 billion yen, a deterioration of 332.2. billion yen from last year's final quarter. The operating loss was $884 million or 73.4 billion yen, a deterioration of 17.3 billion yen year on year.

Sales in the fourth quarter fell 7.8 percent to $19.04 billion or 1.58 trillion yen.

In its Consumer, Professional & Devices (CPD) segment sales and operating revenue for the year were up 1.6 percent to $43.0 billion, or 3.57 trillion yen. Operating income was $35 million, or 2.9 billion yen, reversing a 53.2 billion loss from the prior year.

Sales increased during the year for the segment due to higher LCD TV sales. LCD TVs hurt operating results due to lower unit selling prices and unfavorable exchange rates despite higher unit sales.

In its Networked Products & Services (NPS) segment sales were up 0.4 percent to $19.0 billion or 1.57 trillion yen for the year. Operating income for the segment during the fiscal year was $429 million, or 35.6 billion yen, compared with a loss of 83.3 billion yen in the prior year.

Sales in the segment increased mainly due to PCs and cost reductions in PlayStation 3 hardware and higher unit sales of PS3 software helped operating income.

Sony is projecting a 4.4 percent increase in sales and operating revenue in its fiscal year ending March 31, 2012 and net income of 80 billion yen, as compared to its loss of 259.6 billion yen for this fiscal year.

In its CPD segment Sony expects sales to increase year-on-year, despite the negative impact of the earthquake, due in part to higher sales in LCD TVs. Operating income is expected to significantly increase, primarily due to continuous cost reductions and sales increases in LCD TVs, as well as a decrease in restructuring charges. The expected operating income increase is partially offset by the negative impact of the earthquake, which is anticipated to primarily affect components and compact digital cameras.

In its NPS segment sales are expected to increase year-on-year primarily due to higher sales in the game business, PCs and network services.

In contrast, operating income is expected to significantly decrease, primarily due to lower unit sales of

PSP (PlayStation Portable) and PS2 hardware and software, as well as expenses associated with the unauthorized access to Sony's PlayStation Network, Qriocity and Sony Online Entertainment network services.
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