Sony Suffers Increasing Loss of Earnings
According to the latest forecast about the earnings of Sony based on its product sales, it was revealed that the company is already growing its losses for the past few months. Sony’s red ink worsened in the April-June quarter and it lowered its full-year earnings forecast as it battles a strong yen and declining sales of liquid crystal display TVs and video game machines. How did this happen?
On Thursday, the Japanese electronics and entertainment company revealed on their latest report that they lost about 24.6 billion yen, equivalent to $316 million, just for this quarter. This was revealed to be a whole lot bigger compared to its 15.5 billion yen loss a year earlier.
In addition, sales also edged up for about 1.4 percent to 1.52 trillion yen (equivalent to $19.4 billion), helped by cameras, professional broadcasting products and mobile phones. Not just that, because they are still expecting a higher loss for the succeeding years. They need to do something about this because if it continues to grow, Sony will probably be forced to close the company.
Tokyo-based Sony Corp. Lowered its earnings forecast for the business year through March 2013 to a 20 billion yen ($256 million) profit, down from 30 billion yen projected in May, citing uncertainty in foreign exchange rates and global demand. It also got hit by a 20 billion yen additional income tax expense, had 11.3 billion yen in restructuring charges for the quarter, and invested heavily in image sensor production.
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