Sony Plunges On Poor Q2 Results, Lowered Forecast

(RTTNews) - Shares of Sony Corp. (SNE, SON.L) fell close to 12 percent in Tokyo on Friday after the Japanese consumer electronics firm Thursday reported a wider loss for the second quarter and lowered its full year forecast. The stock had closed down by more than 11 percent on the New York Stock Exchange on Thursday.

Net loss attributable to the company's stockholders widened to 19.3 billion yen ($0.2 billion) or 18.91 yen per share from 15.5 billion yen or 15.41 yen per share in the previous year.

Sales and operating revenue increased 10.6 percent to 1.776 trillion yen from 1.605 trillion yen, amid favorable currency impact and increased sales of smartphones.

Operating income more than halved to 14.8 billion yen, primarily due to a sharp decline in operating results in the Pictures segment, partially offset by improvement in the Mobile Products & Communications or MP&C segment.

Segment-wise, Imaging Products & Solutions or IP&S reported nearly a 7 percent fall in revenues and posted an operating loss, compared to a profit last year, as unit sales of video cameras and compact digital cameras fell.

In the MP&C segment, sales increased over 39 percent due to strong smartphone sales as well as favorable currency.

In Home Entertainment & Sound, or HE&S, which included the television business, sales climbed 12 percent on favorable exchange rates, but the segment saw a drop in LCD television unit sales.

Devices sales were 16.7 percent lower due to the decrease in sales of system LSIs for the game business as well as the absence of sales from the chemical products related business that was sold last year.

Pictures sales were 9 percent higher, benefiting from positive currency impact. On a U.S. dollar basis, sales dropped as a result of lower television licensing, home entertainment and theatrical revenues. Music sales also increased on favorable currency.

Looking ahead to the fiscal year, the company now expects net income attributable to stockholders of 30 billion yen, compared to its previous projection of 50 billion yen.

Consolidated sales for the year are expected to be 7.7 trillion yen, down from the 7.9 trillion yen forecast earlier due to a downward revision to the annual unit sales forecasts for some electronics products.

Operating income is now estimated to be 170 billion yen, in comparison with the August forecast of 230 billion yen.

While Sony reported dismal results, its peer Panasonic Corp. (PC) swung to a profit for the second quarter and lifted its full year forecast citing positive effect of yen depreciation and expected sales growth in stable housing & automotive businesses.

Sony is currently falling 11.6 percent in Tokyo at 1,659.00 yen. SNE plunged 11.2 percent on the NYSE on Thursday to close at $17.25.