Despite Improved Sales, Sony Continues to Disappoint Investors

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I will admit it: I am completely biased in my electronics company preference. My televisions, sounds systems, and gaming consoles are all made by Sony Corp. (NYSE:SNE) I have been loyal to the company’s products for the past two decades. But to be honest, the company is really struggling. I have long considered buying the stock ahead of major product releases, most recently being the release of the PlayStation 4. But time and again, the company has proven why my decisions not to by the stock have been correct, despite my affinity — or perhaps addiction — to its products.

Why do I say this? Well, Sony just recently released its quarterly earnings, in which the company reported a mind-boggling $1.3 billion quarterly loss for the fiscal year through March 2014, which it attributes to costs from selling its personal computer business as well as other input costs. To make matters worse, Sony is now forecasting further losses as it struggles to execute a long-promised turnaround — one that I have been waiting for. Mind you, this loss is over three times its loss of around $400 million the previous year.

The company is forecasting another dismal year for fiscal 2015, although not nearly as bad as fiscal 2014. It forecasts a $490 million loss for the year ending March 2015, as overall sales are expected to be flat. A big contributor is the loss of its Sony Vaio PC business. For those keeping score, by the way, PCs/tablets are the only major electronics I own that are not Sony-made.

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