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Sony Q1 profit down 55 per cent

Blame it on the Yen, says electronics giant

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The strong Yen and severe price cuts combined to hack 55 per cent off Sony's first quarter profits. For the three months to 30 June, saw net profits fall 55 per cent to Y18.43 billion ($158.8 million). Operating profit fell to Y42.24 billion ($364 million). Sony said its profits would have been down just 17 per cent if the Yen had not risen so highly against the dollar during the last 12 months. Balancing the Yen's effect were strong sales of digital camcorders and Sony's popular line of Vaio notebook and desktop PCs. Sales of the PlayStation began to tail off in anticipation of the upcoming PlayStation II, though not as quickly as some analysts had predicted. ®

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