Sony annual net loss to double at $6.4 bn

Sony Corp is looking at a $6.4 billion annual net loss, which is double its earlier forecast and marks the fourth straight year in the red, worsened by writing off deferred tax credits mainly in the US.

In a bid to allay investor concerns over its deteriorating bottom line, the Japanese consumer electronics giant said it expected to bounce back in the current year to end-March 2013 and make an operating profit of 180 billion yen ($2.2 billion).

Sony, which plans to axe 10,000 jobs amounting to 6 per cent of its global workforce - according to media reports this week, had taken a hit due to weak demand for its televisions, and being overtaken by more innovative gadgets from rivals like Apple and Samsung.

In a further sign of how Japan Inc, particularly the electronics industry was in deep trouble, consumer electronics and LCD maker Sharp Corp today increased its full-year net loss forecast to 380 billion yen ($4.67 billion) from 290 billion yen.

According to Kazuo Hirai, who took over as Sony's CEO this month, he was prepared to initiate "painful steps" in a bid to revive the company and would not hesitate to scale back or withdraw from businesses that were not competitive.

The Sony veteran, known for reviving the PlayStation gaming operations through aggressive cost-cutting, he would be able to get the struggling TV business, which alone had lost $10 billion in 10 years, back on its feet within two years.