Sony Slammed With 72% Quarterly Loss
October 29, 2008 at 5:26 AM (PT)
SONY reported a 72% plunge in quarterly profit on WEDNESDAY as a surging yen wiped out perks from flat-panel TV and PLAYSTATION 3 sales, as well as box office revenue from the movie "Hancock." SONY CORP. marked a net profit of 20.8 billion yen ($214 million) for the JULY-SEPTEMBER period, down 71.8% from 73.7 billion yen the previous year. Sales in the fiscal second quarter slipped 0.5% to 2.072 trillion yen ($21.4 billion).
SONY makes about 80% of its sales overseas and is extremely vulnerable to fluctuations in the exchange rates. A rising yen erodes the overseas profits when converted into yen.
Just last week, SONY drastically cut its full-year projections. For the fiscal year through MARCH 2009, SONY is expecting a 150 billion yen ($1.5 billion) profit, down 59% from the previous year, on 9 trillion yen ($92.8 billion) sales, up 1% on year.
SONY also recorded an equity loss of 3.1 billion yen ($31.9 million) in SONY BMG because of a declining music market, it said. Best-sellers included KINGS OF LEON'S "Only by the Night" and AC/DC's "No Bull."