Economy, Strong Yen Cause $1.03B Sony Loss

Hard hit was the electronics segment, which saw a steep 17 percent drop.

Last Updated: May 15, 2009 @ 12:47 PM

Sony reported a $1.03 billion net loss for the fiscal year on Thursday, hit hard by the continued faltering economy and a strong yen.

 

Overall sales fell 12.9 percent to $81.2 billion for the company’s fiscal year, which ended March 31.

 

Hit hard was the electronics segment, which saw an operating loss of $1.76 billion on sales of $57.6 billion — a steep 17 percent drop.

 

The games segment also stumbled badly, recording a loss of $614.5 million, while sales fell 18%. Sony blamed the yen’s appreciation against the dollar and euro and weak sales of PlayStation 2.

 

Motion picture division sales fell 16.4%, while profit plunged 48.9 percent. CEO Howard Stringer said weak home entertainment sales were the main reason.

 

But, like many other conglomerates that have reported earnings recently, theatrical revenues were good, with "Hancock," "Quantum of Solace" and "Paul Blart: Mall Cop" scoring big numbers at the box office. "Angels & Demons" opens Friday in the U.S.

 

Sony plans to close eight manufacturing sites, out of 57, including four overseas, while maintaining it will cut staffers worldwide.