Sony Cuts FY09 Forecast On Currency, Lower Sales

Cuts 2009 Forecast

SONY CORP. announced its preliminary second-quarter results, reporting a 72% fall in net profit, reports TRADINGMARKETS.COM. Further, the company trimmed its fiscal 2009 profit outlook drastically, citing changes in foreign currency exchange rates assumptions and lower sales due to deterioration in the market environment.

The company's net income in the second quarter fell 72% to 21 billion yen from last year's 73.7 billion yen. Income before income taxes was 7 billion yen, down 94% from 109.1 billion yen a year ago. In the quarter, sales and operating revenue dropped 1% to 2.070 trillion yen from 2.083 trillion yen recorded in the previous year. In the preceding quarter, the company had reported net income of 35 billion yen or 33.28 yen per share on consolidated sales and operating revenue of 1.979 trillion yen.

The company now anticipates an increase of about 10 billion yen in operating income compared to the JULY forecast, resulted from the recently completed acquisition of BERTELSMANN AG's 50% stake in SONY BMG MUSIC ENTERTAINMENT. SONY BMG, which previously was an equity affiliate, became a wholly owned subsidiary of SONY, and its operating income will be recorded in SONY's consolidated operating income from OCTOBER 1st.

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