Sony posts worst loss in 16 years! (via electronista)
I expected a small loss due the recent earthquake disaster but I didn’t expect the loss to be that big! You can download the full report as pdf (Click here). The company lost $3.2 billion in the 12 months! That’s the worst lost in 16 years. There are many reasons for that debacle. Electronista analyzed the results: “Most of the loss came from a $4.4 billion equivalent setting aside of tax assets to address worries about future results. The earthquake in the Tohoku area of Japan will also have cut into its performance through repairs and lost production. Slow TV sales affecting the whole industry, as well as a struggle to keep sales going for the PS3, PSP, and Walkman players, all of which are suffering due to Microsoft’s Xbox 360, Nintendo DSi systems, and both Apple’s iPhones and iPods.”
It’s unclear yet if that result will affect the imaging division (I don’t think so). The good news is that Sony also predicted a big plus for the next fiscal year (+$2.4 billion). So no need to be to much worried yet! I hope the whole Japanese economy canreboot as soon as possible!
Related Posts
Via Electornista
Share
Recent comments
Comment from Helena: ¿Conservative? ¿With EVF like new stan...
Comment from SonyA77: Which would mean all of their current li...
Comment from Walle: A77 $999 pricetag + $3.2 billion loss = ...
Comment from Will: No credit card data was compromised in t...
b shaw
2 years ago |Thanks for posting this – Although, I’ve just skimmed their forecast revision, it appears that they may be ‘piling on’ to the losses due to the earthquake. That is, in addition to the earthquake losses, they have selected to make some changes in the most recent FY so that all of their losses hit at once -
It’s actually a smart move on their part. That is, their stock wont be that much more devalued than it would have been with just the Earthquake. It’s like burying bad news inside worse news. Imagine if there was not earthquake and they reported taking the hit on their asset valuation. Their stock might have taken a big hit. By lumping everything together, they probably mitigated some of the potential damage from the asset valuation loss.
Also, surprisingly, they made this statement: “Consolidated sales and operating revenue as well as operating income are expected to be in line with the forecast announced in February, despite the impact of the Great East Japan Earthquake …” If they were able to do that without a lot of contribution from the the sales of securities that they mentioned, then kudos to them.
JChristopher
12 months ago |Agree. A lot of accounting tomfoolery. Same thing happens when companies change CEOs. Find everything available that is not good and blame it on the outgoing CEO as a loss.
Daemonius
2 years ago |I think that things like NEX (and its popularity in Japan) or A33/A55 (and popularity in EU maybe even USA) must create quite good results from imaging division.
Carl
2 years ago |Compared to their gaming, film and music, property and television divisions, their camera business is just a drop in the bucket, though.
PhotoNut
2 years ago |Sony is going downhill fast. In addition to lackluster or me-too products in almost every category (TVs, Walkmans, Cellphones, DSLRs, Google TV etc…) they pursued PS3 hacker GEOHot with a vengance and in return got hacked multiple times with almost all their customer data and credit cards breached in each case.
Truly, Sony resembles a Japanese Microsoft. Big, conservative and going nowhere fast.
alex
12 months ago |+1
SonyA77
12 months ago |I don’t think a predicted swing of 2.4 BILLION USD suggests a company “going nowhere fast”.
Will
12 months ago |No credit card data was compromised in the PSN attack, at least it has not been reported as such. A different attack, not on the PSN, got some credit card info though.
Helena
12 months ago |¿Conservative? ¿With EVF like new standard? ¿Being 1 of 2 manufacturers of APSc mirrorless? ¿Pushing big the 3D in TVs? That is no a new Windows Millenium Edition.
IHUR
2 years ago |Couldn’t agree more with PhotoNut,except the Microsoft part, they’re cool for me
Take that big punch for chasing down Geohot and disrespecting people’s privacy by subpoenaing the ip addresses of anyone who visited geoholt.com
b shaw
2 years ago |PhotoNut – So I understand your perspective a bit more, would you answer a couple of questions for me – Are there any companies that you admire? If so, why do you admire them?
at
12 months ago |I think the Imaging Division can grow up faster because Sony is more aggressive in new product deployment with its NEX, SLT and DSLR product lines targeted for different users. Of course, I expect more features to be added to their products to increase its total sales.
KaiserX
12 months ago |I can’t answer for ‘Nut, but more importantly than admiration, I have brand loyalty to certain companies that have provided me with good customer experiences. Those would include Apple, of course, and then there’s others like Ford, Amazon, Zappos, and Sony. In my experience, those companies have earned my loyalty with proven great quality and great support.
pancanikonpus
12 months ago |Advanced a day, we are older a day! 43 days to go! a77
too long to wait for a77, stock arrive prob. Oct. I think i will go with 60D first, and sell off on Oct to approach a77. expected loss few hundred in this plan. tomorrow approach the local seller see can he do this
Chris
12 months ago |i see..so nikon and canon should be worried that sony goes broke?
SonyA77
12 months ago |Nikon wouldn’t have any sensors if Sony went broke
Daemonius
12 months ago |They would, just not that good ones. Theres quite a lot of factories able to produce CMOS.
SonyA77
12 months ago |Which would mean all of their current line of cameras with Sony sensors would be discontinued overnight
acolyte
12 months ago |I’m sorry if I’m being rude, but with all these disasters, there should be higher demand for imaging devices, for capturing, relaying, and informing events..
They might be hit and reevaluate production and restructure labor, but the imaging division should not be ending yet.
Walle
12 months ago |A77 $999 pricetag + $3.2 billion loss = $1199 a77 new pricetag.