Japanese electronics giant Sony Corp has posted its first $1-billion annual loss in 14 years as the global recession continues to take its toll in most of the industries in Japan.

Sony also warned that the company would go further in the red this financial year.

The near-to-non existent demand for electronics coupled with a strong yen against the dollar and the euro, will see Sony's net losses increase to ¥120 billion ($1.26 billion) in the next 12 months ending in March, warned the Japanese electronics and entertainment company.

The results were in sharp contrast to the ¥369.4 billion profit, Sony recorded a year earlier. Sales for the fiscal year through March dropped nearly 13 per cent to ¥7.73 trillion yen.

Sales dropped by 20 per cent in the US, 17 per cent in Europe while in Japan it dropped by 14 per cent.

More than three quarters of Sony's revenues come from outside Japan. The yen surged 24 and 30 per cent against the dollar and euro last year reducing the value of repatriated overseas earnings.

The Minato, Tokyo-based company said that it is working towards reducing costs by more than ¥300 billion and is on track to reduce its workforce by 8,000 from its global workforce of 185,000, through early retirement and other programs after reducing more than 8,000 temporary and seasonal workers in end-March.

Sony will also shutter eight manufacturing sites, four in Japan and one each in the US, France, Mexico and Indonesia by the end of December this year, which will bring the number of manufacturing sites down to 49 from 57 last year.

Sony said that one plant that makes cell phone cameras, one that makes parts for video recorder, another one for systems used for smart cards and one that makes flexible flat cables would be shuttered in Japan.

The prime losses were in the consumer electronics division with the sales of its Bravia range of flat-panel TVs plummeting and in the gaming sector, its PlayStation 3 losing out to its rival, Nintendo.

In its movies division, home entertainment sales declined and the decline could not be halted by the release of some good movies, including "Hancock.

Beyonce's "I Am Sasha Fierce" and AC/DC's "Black Ice" were among albums that did well in its music division.

Howard Stringer, chief executive officer, a Welsh-born American and the first foreigner to head Sony, had said in December that he intends to slash 16000 jobs worldwide, close factories, cut investment as the recession in Europe, Japan and US forces consumers to cut spending. (See: Sony braces up for recession; cuts jobs, closes factories)

Sales of many electronic goods like flat-panel televisions, cameras and mobile phones are forecast to fall this year, according to studies conducted by a leading Tokyo based institute.

According to analysts at the institute the forecast cut in not unique to Sony but is related to trends across the industry. Sony needs to something more than the introducing the usual cost cutting measures like job cuts and shutting factories they say.