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Sony targets annual opg profit over JPY 500 bln by 2018
2015-02-18 09:01:00| Telecompaper Headlines
(Telecompaper) Sony announced a new mid-term corporate plan focused more on profitability. For the three years to March 2018, the company will use return on equity as its main performance indicator, targeting a ROE of 10 percent. It also aims to raise operating profit to over JPY 500 billion by the fiscal year to March 2018, from an estimated 20 billion in the current year. At the operational level, the group will emphasize profitability over volume, and each business unit will have greater autonomy and a mandate to focus on shareholder value. Sony said its growth drivers will include the Devices division, and mainly its CMOS imaging sensors; the Playstation business; the Pictures division and especially the TV business; and the Music unit, which will focus more on the streaming market. The Imaging Products & Solutions and Video & Sound division are seen as more stable profit generators, rather than growth areas, and Sony will focus here on high value-added products. The remaining divisions, Mobile Communications and TV, are more volatile, subject to difficult market conditions. Sony said it will make restoring profitability the highest priority at these operations, while limiting capital investment in the activities. The company will also continue to explore potential alliances with other companies in these areas.
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Category:Telecommunications