Sony Hits Just Keep Coming
Sony Corp.’s (NYSE:SNE) results for the year ended March 31 have been revised further into the red to a record loss of 520 billion yen ($6.4 billion). The estimated loss, more than double the 220 billion loss the company forecast in February, is the result of Sony’s fourth revision to its fiscal 2011 earnings.
Rival Sharp Corp. also revised upwards its projected loss for the full year to 380 billion yen, from 290 billion yen, indicating that the problems were industry pervasive.
“There have been several reasons for our poor results,” Chief Financial Officer Masaru Kato said at a news briefing in Tokyo on Tuesday, noting a strong yen coupled with poor demand.
Sony’s losses have also been exacerbated by writing off deferred tax assets, primarily in the U.S., to the tune of 300 billion yen. The assets were written off due to the company’s mounting losses.
“To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but a lot of talent left under early retirement plans,” said Tetsuru Ii, president of Commons Asset Management, who oversees about 2.7 billion yen worth of assets and does not hold Sony stock.
Kato said Sony had no plans to raise money through a share offering or other equity finance. He would not confirm the reports of job losses other than those arising out of a chemical business and small LCD unit that are being hived off. “We can improve shareholder equity in several ways, including bolstering cash flow or selling assets,” he told reporters. “Equity finance is also an option, but at this moment we have no concrete plan to do so.”