Hit by yen, Thai floods, Sony sees wider net loss

February 2, 2012
In this Nov. 19, 2009 file photo, Sony Corp. CEO Howard Stringer, left, and Executive Deputy President Kazuo Hirai smile as they show off the company's latest products, e-book "Reader," and a new remote controller for PlayStation 3, respectively, during a press conference in Tokyo. Sony announced on Wednesday Feb. 1, 2012 Kazuo Hirai will replace Howard Stringer as president and chief executive officer effective April 1. (AP Photo/Shizuo Kambayashi, File)

(AP) -- Battered by weak TV sales, a strong yen and production disruptions from flooding in Thailand, Sony Corp. on Thursday reported a net loss of 159 billion yen ($2.1 billion) for the October-December quarter and projected it would lose even more money for the full fiscal year than it had expected three months ago.

The and entertainment company, which a day earlier announced that Kazuo Hirai will replace Howard Stringer as CEO and president effective April 1, said it predicts a of 220 billion yen for the year through March, up from an earlier forecast of 90 billion yen.

That would be fourth straight year of red ink for Sony, despite massive cost cuts and restructuring efforts in recent years.

Hirai, 51, leads the company's core consumer products business. He will be taking the helm at Sony as it struggles to regain its once-powerful stature and creative flair that made it a dominant force in the global electronics industry in the 1980s and early 1990s.

Hirai, currently executive deputy president, was widely expected to succeed the Welsh-born Stringer, one of the few foreigners to lead a major Japanese company. He will retain his post as chairman of the board.

A key priority for Hirai will be turning around Sony's struggling TV business - battered by competition from South Korea's Inc. and others. Hirai, who also led Sony's gaming division earlier in his career, also must guide Sony as it faces increasingly intense competition in the gaming sector from Apple Inc.'s iPod and and Nintendo Inc.'s DS handheld.

Hirai, who in 2009 was named as part of a new management team made up of younger executives, laid out some objectives in a statement released Wednesday evening.

"The path we must take is clear: to drive the growth of our core electronics businesses - primarily digital imaging, smart mobile and game; to turn around the ; and to accelerate the innovation that enables us to create new business domains," he said.

Sony, which makes about 70 percent of its sales outside Japan, has also been hurt by the strong yen, which erodes overseas earnings.

Sony's regional production network was hit by widespread flooding late last year in Thailand, where two of its factories had to be shut down and are still not operating, according to Satsuki Shinnaka, a company spokeswoman. The company has shifted production to other facilities to make up for the shortfall.

Explore further: Sony's Hirai to replace Stringer as CEO in April


Related Stories

Sony's Hirai to replace Stringer as CEO in April

February 1, 2012

(AP) -- Sony Corp. announced Wednesday that Kazuo Hirai, who leads the company's core consumer products business, will replace Howard Stringer as CEO and president effective April 1, as the electronics and entertainment ...

Sony's Stringer 'to step down' as president

January 7, 2012

Howard Stringer, the Welsh-born American head of Japanese games, music and electronics giant Sony, is to step down as the firm's president, reports said Saturday, while remaining CEO and chairman.

Sony headed for fourth straight year in the red

November 2, 2011

(AP) -- Sony reported a 27 billion yen ($346 million) loss for the latest quarter and downgraded its annual earnings forecast Wednesday to stay in the red for the fourth year straight, battered by the strong yen and poor ...

Sony chief to fight on after 'annus horribilis'

November 10, 2011

Sony chief executive Howard Stringer said Thursday that he has no plans to step down and was "up for the fight" of turning the Japanese electronics giant around after a year of setbacks.

Recommended for you

Startup Pi out to slice the charging cord

September 19, 2017

Silicon Valley youngster Pi on Monday claimed it had developed the world's first wireless charger that does away with cords or mats to charge devices.


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.