Sony revises March 2010 result forecast to profit from loss

10 May 2010

Sony Corp has revised its consolidated results forecast to an annual profit for the fiscal year ended 31 March 2010 from an operating loss announced on 4 February  2010.

Sony raised its operating forecast to a profit of ¥32 billion from ¥30 billion loss and adjusted the operating income up by 52 per cent to ¥213 billion from ¥140 billion for the year ended 31 March  2010.

Sony said the principal factors for the improved operating results were improved performance of its consumer and devices segment, which includes LCD television by approximately ¥30 billion as a result of reductions in both manufacturing cost and operating expenses that exceeded expectations. This improvement is expected to be mostly offset by the LCD television asset impairment of approximately ¥27 billion.

The operating results  for the financial services segment at Sony Life Insurance Co Ltd are anticipated to exceed the February forecast by approximately ¥15 billion primarily due to an improvement in the Japanese stock market during the fourth quarter ended March 31, 2010.

Similarly the operating results for the networked products and services segment are expected to exceed the February forecast by approximately ¥10 billion due to improved performance within the game business and VAIO PCs as a result of better than anticipated reductions in both operating expenses and manufacturing cost.

The net income (loss) of equity affiliates is expected to exceed the February forecast by approximately ¥10 billion mainly due to better than expected performance at Sony Ericsson Mobile Communications AB.

The company will announce the consolidated results on 13 May  2010.