Sony Posts $1.3 Billion Loss

Japan’s Sony Corp posted a 128.4 billion yen ($1.3 billion) net loss for the previous fiscal year, as the electronics giant struggles to keep its head above water following its exit from the personal computer business.

Sony sank to a 138 billion yen ($1.3 billion) quarterly loss and forecasts an expected net loss of 50 billion yen ($489 million) for the coming financial year.

While sales for fiscal 2013 increased to 7.7 trillion yen ($76 billion), up 14.3 percent, Sony will continue to bleed red ink from losses stemming from selling its Vaio PC business.

The PC-related losses are expected to continue this fiscal year, totaling 80 billion yen ($784 million), on top of the 92 billion yen ($900 million) for the fiscal year, ended March 2014.

Sony logged a 95.2 billion yen operating loss from the electronics business, while the company struggled to turn around its television unit, which has faced tough competition from Asian rivals such as Samsung Electronics. Sony’s TV unit has lost more than 700 billion yen over the past decade, according to Bloomberg.

Sony managed to secure a net profit of 41.5 billion yen in fiscal 2012, and initially forecasts that it would again make profit in 2013. But the company subsequently revised the initial forecast downward three times.

The grim outlook puts pressure on Sony CEO Kazuo Hirai, who pledged two years ago to drive its flailing electronics business into profitability.

Hirai plans to revive Sony’s electronics operation by cutting 10,000 jobs and refocusing from its TV unit to smartphones, cameras and game consoles like the PlayStation to help turn its fortunes around. The company also plans to spend an additional 135 billion yen on restructuring in the coming year.

Meanwhile, about 40 Sony executives, including Hirai, will forgo bonuses worth 30 to 50 percent of their annual pay in the year to March, according to company spokeswoman Mami Imada.

By Maesie Bertumen

Image: “Sony Corporation Headquarters – ソニー株式会社 本社” by xsix/Flickr

Sony, Kazuo Hirai, Playstation, Sony VAIO

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