Sony reports first annual loss in 14 years
Japan’s Sony Corp. has posted its first annual loss in last 14 years on Thursday. The company reported a huge $1 billion (98.94 billion yen) dip in profits for the previous financial year.
The recession worldwide plunged sales and has taken a heavy toll on the high-tech giant’s sales as the revenues plunged close to a staggering 13 per cent. The company made a staggering net profit of 369.44 billion yen last year as compared to its loss this year, the company’s first in 14 years.
The company however fared better than the expectations, the net loss being fairly smaller than the forecast for a 150-billion-yen shortfall.
Sony, the manufacturers of Bravia televisions, PlayStation game consoles and Walkman music players reported an annual operating loss of 227.78 billion yen, against a year-earlier profit of 475.30 billion yen. The annual revenue of the company dipped 12.9 per cent in the year.
According to Sony, it believes that the company was hit hard by the economic slowdown and the subsequent slump in sales across the globe. Other reasons mentioned by the company include a stronger yen and the falling value of its investments.
