Sony posts $5.6 billion annual loss

Sony Corp reported a record $5.6-billion annual loss yesterday, marking an end to an economically troubled fiscal year that came in the wake of after-effects of last spring's earthquake and tsunami in Japan and saw floods in Thailand.

The consumer electronics and media giant, which is in the process of an extensive rejig, said revenue was down 9.6 per cent to $79.2 billion in its fiscal year ended 31 March, down from $87.8 billion last year. Sony's loss of $5.6 billion, or $5.55 a share, was nearly double the prior year's loss of $3.2 billion. (See: Sony confirms 10,000 job cuts, TV business restructuring)

Around $3.2 billion loss recorded for the fiscal year just ended came from a paper loss it suffered from writing down deferred tax assets. In April Sony cautioned investors about the expense hit, as also the drop in sales.

Much of the fall in revenue last year could be attributed to an 18.5-per cent sales decline at its LCD television sets, digital cameras, personal computers and PlayStation games business, which accounted for nearly half of Sony's total revenue.

Its TV and games business took a hard hit as competition from low-cost rivals forced it to drastically cut prices. Meanwhile, sales of digital cameras and PCs was down following an October flood in Thailand that stalled production for weeks. According to its estimates Sony lost sales of $170 million as it struggled with repairs at its facilities that cost it $160 million.

Sony's movie business to some extent took the edge of the losses in electronics, turning in a $416-million operating profit on $8 billion in sales. A 9.6 per cent revenue rise for Sony Pictures came from its television business as also growth in video-on-demand sales and a sale of its share in the royalties from Spider-Man merchandise.