Sony Corporation is poised to announce an annual operating loss of approximately USD 1.1 billion as a result of weak sales and the impact of a stronger yen, marking the company’s first loss in 14 years.
According to Reuters, the Japanese electronics giant previously forecast an estimated JPY 200 billion/USD 2.2 billion profit, though waning consumer spending – particularly on higher priced goods – as a result of the global economic slump has since hit the company hard.
Furthermore, and in light of Sony’s decision to cut 8,000 jobs by 2010, analysts expect the hardware manufacturer to employ even more drastic measures, should the firm post losses of USD 1.1 billion as speculated.
Said JPMorgan analyst, Yoshiharu Izum: “Sony could reduce the number of products it offers, and it may also have to consider selling off its financial unit.”
"Even though external factors are the main reason (for the likely loss), the management team is partly the cause for the long delay in turning around its TV business," he added. "They may have to take responsibility for that since the company is cutting personnel now."