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Sony reduces loss on sales recovery, restructuring

Associated Press Modified: November 1, 2012 at 3:47 am •  Published: November 1, 2012
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TOKYO (AP) — Sony Corp. reported Thursday a smaller flow of red ink for the fiscal second quarter on a sales recovery and restructuring efforts and stuck to its full year forecast for a return to profit from its worst loss in company history the previous year.

The Japanese electronics and entertainment company recorded a 15.5 billion yen ($193 million yen) loss for the July-September period, much better than the 27 billion yen loss racked up the same period the previous year. Quarterly sales improved 1.9 percent to 1.6 trillion yen ($20 billion).

The Tokyo-based maker of Bravia TVs and the PlayStation 3 game machine remains in deep trouble as does much of the Japanese electronics industry — slammed by cheaper competition in flat-panel TVs, and by Apple Inc. of the U.S. and South Korea's Samsung Electronics Co. in mobile devices.

Sony, which reported a record annual loss of 457 billion yen ($5.7 billion) for the fiscal year ended March 31, its fourth straight year of red ink, stuck to its forecast to eke out a 20 billion yen ($250 million) profit for the current fiscal year.

Separately, Japanese electronics maker Sharp Corp. reported its red ink for the fiscal first half jumped nearly 10-fold from the previous year to a 388 billion yen ($4.9 billion) loss.

Osaka-based Sharp did not break down quarterly results. It said it expects a 450 billion yen ($5.6 billion) loss for the full fiscal year through March 2013. That would follow massive losses it racked up the previous fiscal year.

On Wednesday, Panasonic Corp. also reported massive losses and forecast a 765 billion yen ($9.6 billion) loss for the fiscal year. That would mark the second straight fiscal year of massive losses for the maker of the Viera TVs and Lumix digital cameras.

That would be worse than the record loss of 772.2 billion yen ($9.6 billion) that Panasonic plummeted into for the fiscal year through March — already among the biggest in Japan's manufacturing history.

Panasonic shares nosedived 19 percent in Tokyo trading Thursday, on the disastrous results delivered the day before. Sony issues shed 4 percent. Sharp shares, which have lost about three-quarters of their value over the past year, edged down nearly 2 percent.

The plight of Japanese electronics makers underlines their failure to be nimble with innovation at a time when cheaper rivals are able to come out with similar products very quickly.

Panasonic tried to shift its operations to catering to other businesses such as solar panels and batteries, but even those sectors have been battered by price falls and aren't proving as profitable as initially hoped.

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