Sony FY Sales, Net Income Are New Records

By Steve Smith On May 19 2008 - 6:00am

Sony reported record sales and net income for its fiscal year and posted a profit in its fiscal fourth quarter, which both ended March 31.

In its fiscal fourth quarter, sales were up 6.5 percent to $19.5 billion, with a net income of $290 million, compared with a loss of almost double that size in the previous year's fourth quarter.

Sony said that during the quarter, sales to "outside customers" were up with such products as Bravia LCD, Vaio PCs, PlayStation video games and Cyber-shot digital cameras, but mobile phones, LCD rear-projection TV and CRT TV sales were down. Overall, sales were down due to primarily due to a decrease in inter-segment sales to the game operation. However, a decrease in operating losses with PlayStation helped Sony swing to a profit in the quarter.

For the fiscal year, Sony's sales and operating revenue were up 6.9 percent to $88.7 billion, with net income up a staggering 192.4 percent to $3.69 billion.

By business segment, electronics sales and operating income was $66.1 billion, up 8.9 percent, for the fiscal year while operating income was $3.6 billion, rising 121.8 percent, primarily due to increased sales and the positive impact from the depreciation of the yen against the euro, the company said, but worldwide price competition in LCD TVs hurt profitability of the Bravia line.

In the game segment sales were up 26.3 percent to $12.8 billion and its operating loss was $1.245 billion, almost half the loss of the previous year due to a decrease in operating losses from the PS3 business as a result of successful PS3 hardware cost reductions and increased sales.