Sony books $870mln quarterly profit

Feb 04, 2010
A sign is seen atop the headquarters building of Japan's electronics giant Sony Corp. in Tokyo. Sony announced an October-December net profit of 870 million dollars, a result it said "significantly exceeded expectations".

Japanese electronics and entertainment giant Sony Corp. Thursday announced a third-quarter net profit of 870 million dollars, a result it said "significantly exceeded expectations".

The maker of PlayStation game consoles, Bravia televisions and Cyber-shot cameras is still emerging from the global but narrowed its full-year loss forecast to 70 billion yen from 95 billion yen.

"We did well across the board during the year-end shopping season," said Nobuyuki Oneda, Sony's chief financial officer. "It significantly exceeded expectations."

"Cost cutting efforts bore fruits. Improvements were also seen in our financial businesses," he told a press conference.

For the October-December quarter, reported a net profit of 79.2 billion yen (870 million dollars) against a 10.4-billion-yen profit in the same period a year earlier. In the July-September quarter, it lost 26.3 billion yen.

Sales of rose following a price cut and introduction of successful game titles, Oneda said.

Liquid crystal display televisions in Asia -- a key product group in an important market -- also boosted the operating profit during the quarter although lowered prices reduced overall sales value, he said.

Sony also reported an of 146 billion yen during the three months -- compared with an operating loss of 17.96 billion yen a year earlier -- on revenue of 2.24 trillion yen in the three months to December.

Sony continued to pursue aggressive cost-cutting measures, including shedding 20,000 jobs, Oneda said.

The company was on course to reducing cost by 330 billion yen and to close roughly 20 percent of its factories in the year to March, he added.

The result came days after Sony's competitors Sharp Corp. of Japan and of South Korea also reported they had returned to the black in the last three months of 2009 as the eased.

The robust performance in the third quarter led Sony to upgrade its annual earnings expectations to March.

The company halved annual its operating loss estimate to 30 billion yen, compared with an earlier loss projection of 60 billion yen.

Volatile prices of raw materials still posed risks going forward, although Oneda remained optimistic.

"We have a sense that the economy might be bottoming out. It's difficult to imagine things will again crumble down," Oneda said.

"We are keeping our eyes on prices of materials and memories," he added.

Explore further: New iPhones deliver big profits for Apple (Update)

add to favorites email to friend print save as pdf

Related Stories

Panasonic announces Q1 net loss of 560 mln dlrs

Aug 03, 2009

Japanese high-tech giant Panasonic Corp. announced Monday a big first-quarter loss, blaming weak sales of televisions, digital cameras and other electronic goods during the recession.

Japan's Sharp sees deeper net loss

Apr 08, 2009

Japanese electronics giant Sharp Corp. said that it had fallen deeper in the red than expected in the past year, suffering its first-ever loss due to the economic downturn.

Japan's Toshiba still in red

Jul 29, 2009

Japanese high-tech giant Toshiba said Wednesday it had lost more than 600 million dollars in the fiscal first quarter as the economic downturn hit sales of televisions and other electronics.

Toshiba to cut costs by $3.5 bln

May 24, 2009

Japanese electronics giant Toshiba plans to reduce fixed costs 10 percent more than previously announced, a news report said on Sunday.

Japan's Sharp reports 1.3 bln dollar annual loss

Apr 27, 2009

Japanese electronics giant Sharp Corp. announced an annual net loss of 1.3 billion dollars, its first ever, due to a slump in sales, but it forecast a return to profit this year.

Recommended for you

Facebook sues law firms, claims fraud

9 hours ago

Facebook is suing several law firms that represented a man who claimed he owned half of the social network and was entitled to billions of dollars from the company and its CEO Mark Zuckerberg.

IBM 3Q disappoints as it sheds 'empty calories'

9 hours ago

IBM disappointed investors Monday, reporting weak revenue growth again and a big charge to shed its costly chipmaking division as the tech giant tries to steer its business toward cloud computing and social-mobile ...

MasterCard, Zwipe announce fingerprint-sensor card

Oct 18, 2014

On Friday, MasterCard and Oslo, Norway-based Zwipe announced the launch of a contactless payment card featuring an integrated fingerprint sensor. Say goodbye to PINs. This card, they said, is the world's ...

User comments : 0