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Sony forecasts recovery in 2014, led by smartphone growth
2014-05-14 08:51:00| Telecompaper Headlines
(Telecompaper) Sony reported sales for its fiscal fourth quarter to March up 8.1 percent year-on-year to JPY 1.871 trillion, driven by the weaker yen and strong sales of the Playstation and smartphones. Excluding currency effects, sales fell 0.1 percent. The operating result plunged to a loss of JPY 111.8 billion from a profit of JPY 145.4 billion a year ago, and the net result was a loss of JPY 138.2 billion versus a profit of JPY 93.2 billion a year ago. The results were hurt by the earlier announced restructuring charges and asset writedowns on its PC and CD businesses. The mobile division, which produces phones and computers, generated the highest sales in the quarter, up 2.3 percent to JPY 361 billion. Sony said the growth was due to higher smartphone sales and prices, as well as the positive currency effects. The division still had an operating loss of JPY 67.5 billion, versus a loss of JPY 24.6 billion a year ago, as the losses at the PC activities offset a profit from smartphones. With the planned exit of the computer business, Sony expects the division to return to a profit in the current fiscal year of around JPY 26 billion. Thanks to expected "significant" growth in smartphones, sales at the division are forecast to reach JPY 1.53 trillion this year, versus JPY 1.192 trillion last year. Sony expects its smartphone sales in units to grow to 50.0 million this year, after 39.1 million in fiscal 2013. Sony also forecast sales growth and a return to operating profit for its games, devices and home entertainment divisions this year.
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Category:Telecommunications