Sony Posts $5.6 Billion Annual Loss

TOKYO: Unfavorable exchange rates, the Japanese earthquake, floods in Thailand and a challenging global economy were cited by Sony Corporation as the reasons for its 9.6-percent fall in revenues to $79.2 billion, with net loss more than doubling to $5.7 billion for the fiscal year ended March 31, 2012.

The Japanese conglomerate reported an 18.5 percent fall in revenues at its consumer products and services division, which includes LCD TV sets, PCS, cameras and games. The segment moved from a profit last year to a loss of $2.8 billion. Revenues for the sale of professional devices and solutions fell 12.6 percent, with the segment reporting a loss of $246 million. Music revenues were down by 6 percent, with profit down 5.2 percent to $450 million. Financial services, however, posted both improved revenues and operating income.

Sony Pictures Entertainment, meanwhile, recorded a 9.6-percent revenue increase to $8 billion, thanks to higher television revenues from U.S. network and made-for-cable programming, revenues recognized from the consolidation of GSN, and higher advertising revenues from the television networks in India. Also boosting results were the sale of a participation interest in Spider-Man merchandising rights and higher pay television and VOD sales of theatrical titles. Operating profit for the studio dropped almost 12 percent to $416 million.

In the quarterly results, Sony Corp. improved its revenues slightly and reduced its net loss to $3.1 billion. Looking ahead to fiscal 2013, Sony is forecasting a 14-percent rise in revenues and a profit of $375 million.