Sony Posts Full-Year Loss

TOKYO: For the first time in 14 years, Sony Corporation has recorded a full-year loss for the period ended March 31, 2009, of 98.9 billion yen ($1 billion), versus the fiscal 2008 profit of 369.4 billion yen, on revenues that were down by 12.9 percent to 7.7 trillion yen ($78.9 billion).

The company attributed the fall in revenues and the recording of a loss to the global economic slowdown and to the strong value of the yen, as well as the decline of the Japanese stock market. Sony says it will embark on a cost-cutting initiative in order to reduce its loss this year. Sony forecasts revenues for this year to be down 6 percent to 7.3 trillion yen, with a net loss of 120 billion yen.

Revenues at Sony Pictures fell 16.4 percent to $7.3 billion, and the studio’s profit halved to $305 million. The company posted lower home entertainment revenues but recorded higher theatrical revenues. Television revenues were also up, thanks to increased ad revenue at the international channels. 

In the electronics segment, revenues fell 17 percent to 5.5 trillion yen ($56 billion) and the division posted a loss 168.1 billion yen ($1.7 billion). The games division, meanwhile, narrowed its loss to 58.5 billion yen ($597 million), on revenues that were down 18 percent to 1.1 trillion yen ($10.7 billion).

For the fourth quarter, Sony recorded revenues of $15.5 billion, a 22-percent reduction, with a net loss of $1.7 billion.