Sony Corp Profits Up, While Music Remains Down
October 25, 2007 at 5:45 AM (PT)
SONY CORP swung to a quarterly operating profit as it booked strong sales of liquid crystal display TVs and digital cameras and benefited from a weaker yen, and it raised its full-year forecast by 2%, reports REUTERS. The profit jump also reflected the absence of hefty costs booked in the same quarter last year to recall faulty PC batteries, as well as lower marketing expenses in the pictures division and a gain on the sale of land.
The results could support the view among some investors that SONY remains on a recovery track after cutting thousands of jobs and ditching unprofitable businesses to focus on core electronics products such as Cyber-shot digital cameras and BRAVIA LCD TVs.
SONY BMG posted net loss of $8 million in the quarter, narrower than the loss of $39 million a year earlier. Income before income taxes was $8 million in the second quarter, compared to a loss of $31 million last year, helped by lower marketing, overhead and restructuring costs.
Sales and operating revenue declined 10% to $851 million from $948 million in the previous year, due to ongoing decline in the worldwide physical music market, together with fewer major artists releases.