Sony Revises Profit Estimate Due To Low Blu-ray Disc Demand, PC Sales
Sony slashed its operating profit estimate by nearly 70 percent for the financial year ended March 31, saying it expects its exit from PCs to add nearly $300 million in extra costs and a weak demand for Blu-ray disc media.
The Japanese consumer electronics giant on Thursday cut its operating profit forecast to 26 billion yen ($254.53 million) from a previous estimate of 80 billion yen, adding that it would book 25 billion yen in impairment losses from its optical disc media (DVD, CD-ROM, Blu-ray) production unit for fiscal 2013 due to weak demand in Europe. Sony said that demand for physical media "contracting faster than anticipated," mainly in the European region.
Sony expects to record approximately 30 billion yen in additional expenses in the fiscal year ended March 31, 2014 related to exiting the PC business. Sony on February announced that it would exit the PC business, keeping PC sales for the fiscal year ended March 31, 2014 and the expected PC sales for the fiscal year ending March 31, 2015 lower that expected.
The company also widened its net loss estimate to 130 billion yen, wider than the 110 billion it forecast in February.
Sony's chief executive, Kazuo Hirai has been trying to restore profitability at Sony's struggling electronics division. Sony is curently focusing on mobile, imaging and gaming.
Sony expects to record approximately 30 billion yen in additional expenses in the fiscal year ended March 31, 2014 related to exiting the PC business. Sony on February announced that it would exit the PC business, keeping PC sales for the fiscal year ended March 31, 2014 and the expected PC sales for the fiscal year ending March 31, 2015 lower that expected.
The company also widened its net loss estimate to 130 billion yen, wider than the 110 billion it forecast in February.
Sony's chief executive, Kazuo Hirai has been trying to restore profitability at Sony's struggling electronics division. Sony is curently focusing on mobile, imaging and gaming.