Sony says year's losses will be four times deeper than thought
Losses of more than $2bn loom over troubled Japanese corp
Sony shares dropped more than eight per cent today after the firm warned that it expects losses for this year to be four times as bad as it previously predicted.
The Japanese company now reckons losses for the year to March will reach the dizzying heights of ¥230bn ($2.12bn) as its smartphone business suffers in comparison to Apple and Samsung mobes.
Back in July, Sony had said it thought that the year’s net losses would be closer to ¥50bn ($460m). The company said the new forecast was the result of an impairment charge of around ¥180bn ($1.6bn) in its mobile communications division after a revision of its mid-range plan (MRP).
“The previous MRP was focused principally on achieving significant sales growth. The new MRP was modified to address the significant change in the market and competitive environment of the mobile business,” the company said in a statement.
“Under the new MRP, the overarching strategy for the MC segment has been revised to reduce risk and volatility, and to deliver more stable profits. This revision includes changing the strategy of the MC segment in certain geographical areas, concentrating on its premium line-up, and reducing the number of models in its mid-range line-up.”
Shares in the company finished the day down by 8.64 per cent on the news, after dipping by as much as 13 per cent during the day’s trading. ®