The March 11 earthquake and tsunami probably pushed Sony to a loss of $ 3.2 billion in the just ended fiscal year, the giant electronics and entertainment warned Monday. It was the last Japanese automaker to report a huge financial success of the disaster.
The annual loss would be in 16 years Sony - when problems in its film industry, and the 1995 earthquake in Kobe, had an economic impact.
The loss would be a major setback to efforts by the CEO, Howard Stringer, to turn around the company, whose current product lineup includes video game console PlayStation, BRAVIA flat-screen Vaio laptops.
The forecast means that Sony, which in February had expected a profit for the year, now expects to lose money for the third consecutive year.
Nine plants of Sony in northern Japan were damaged by the earthquake and tsunami, which also disrupted the supply chain and curb domestic consumption. The prospects of the company has also been marred by a series of hacker attacks on online services from Sony, which has forced the company to temporarily close its PlayStation Network, and potentially exposed the personal information of more than 100 million customer accounts .
Sony announced Monday in a press release preliminary financial report that it expects a net loss of 260 billion yen (3.2 billion) for the year ended March 31, 2011 - a sharp reversal against a previous forecast a 70 billion yen profit. The company announces earnings full Thursday.
Much of the loss would come from a provision 360 000 000 000 JPY for deferred tax assets of the company is taken in light of the uncertain outlook for future earnings. Sony left its forecast for annual operating profit unchanged at 200 billion yen (2.4 billion dollars).
For the fiscal year ending March 2012, Sony said it expected to remain operating profit of 200 billion yen. It took into account the continuing effects of the earthquake, which should shave ¥ 150 000 000 000 EBIT, Sony said.
Known costs hacker attacks, which forced Sony to close its PlayStation Network in late April, has so far reached about 14 billion yen, the company estimates. Sony said it hopes to obtain all relevant networks up and running by the end of May. Sony acknowledged that the personal information of more than 100 million accounts have been compromised in the attacks.
Sales for the completed fiscal year were estimated at 7.18 trillion yen, down slightly from the previous forecast of 7.20 billion yen. Sony said it expects net income to turn positive this year, although he did not give an estimate.
Sony is struggling to reinvent itself after being usurped in televisions and digital music players. Even its stronghold in the video game industry is succumbing to its competitors cheaper and more agile.
The film society and how television, Sony Pictures Entertainment, is not able to take over. This division, which reported an operating profit thin $ 58 million in the third quarter on sales of $ 1.8 billion, was injured by a fall in DVD sales industrywide, and high costs of marketing movies who have not fared well in multiplexes.
Specifically, "How Do You Know", a comedy Reese Witherspoon, a cost estimated at 120 million to produce (and tens of millions of others on the market) and sales of tickets only $ 49 million at the box office World in December. The studio managed a few modest hits in the fourth quarter - "Battle: Los Angeles," for example - but was unable to find the kind of successful franchise pictures that have made big profits for competitors.
Sony is trying to address this shortfall by aligning expensive new installments of its "Spider-Man" and "Men in Black" series.
The only time that Sony has accumulated a greater annual loss was in 1995 when he plunged 293 billion yen in the red over large losses in its film division and cost control lax. Japan last devastating earthquake that hit the port city of Kobe in January this year, also weighed on earnings from Sony. But at the time, Sony's mainstay electronics business is still relatively strong. The fallout from the attacks of pirates can be just as worrying as the lingering effects of an earthquake on March 11. In an interview last week, Mr. Stringer has defended Sony's response to the attack, which some critics said it was too slow.
Sony is the last Japanese automaker to report income significantly lower after the magnitude 9 earthquake in March, which devastated much of the northeastern coast of Japan.
Earlier this month, Toyota, whose operations have been severely disrupted since the disaster, said that profit fell 77 percent for the quarter ended March 31. Toyota, which is likely to lose its crown as the largest carmaker in the world this year, said he could not forecast results or production for the coming year because of uncertainty about his ability to resume normal production levels.
The annual loss would be in 16 years Sony - when problems in its film industry, and the 1995 earthquake in Kobe, had an economic impact.
The loss would be a major setback to efforts by the CEO, Howard Stringer, to turn around the company, whose current product lineup includes video game console PlayStation, BRAVIA flat-screen Vaio laptops.
The forecast means that Sony, which in February had expected a profit for the year, now expects to lose money for the third consecutive year.
Nine plants of Sony in northern Japan were damaged by the earthquake and tsunami, which also disrupted the supply chain and curb domestic consumption. The prospects of the company has also been marred by a series of hacker attacks on online services from Sony, which has forced the company to temporarily close its PlayStation Network, and potentially exposed the personal information of more than 100 million customer accounts .
Sony announced Monday in a press release preliminary financial report that it expects a net loss of 260 billion yen (3.2 billion) for the year ended March 31, 2011 - a sharp reversal against a previous forecast a 70 billion yen profit. The company announces earnings full Thursday.
Much of the loss would come from a provision 360 000 000 000 JPY for deferred tax assets of the company is taken in light of the uncertain outlook for future earnings. Sony left its forecast for annual operating profit unchanged at 200 billion yen (2.4 billion dollars).
For the fiscal year ending March 2012, Sony said it expected to remain operating profit of 200 billion yen. It took into account the continuing effects of the earthquake, which should shave ¥ 150 000 000 000 EBIT, Sony said.
Known costs hacker attacks, which forced Sony to close its PlayStation Network in late April, has so far reached about 14 billion yen, the company estimates. Sony said it hopes to obtain all relevant networks up and running by the end of May. Sony acknowledged that the personal information of more than 100 million accounts have been compromised in the attacks.
Sales for the completed fiscal year were estimated at 7.18 trillion yen, down slightly from the previous forecast of 7.20 billion yen. Sony said it expects net income to turn positive this year, although he did not give an estimate.
Sony is struggling to reinvent itself after being usurped in televisions and digital music players. Even its stronghold in the video game industry is succumbing to its competitors cheaper and more agile.
The film society and how television, Sony Pictures Entertainment, is not able to take over. This division, which reported an operating profit thin $ 58 million in the third quarter on sales of $ 1.8 billion, was injured by a fall in DVD sales industrywide, and high costs of marketing movies who have not fared well in multiplexes.
Specifically, "How Do You Know", a comedy Reese Witherspoon, a cost estimated at 120 million to produce (and tens of millions of others on the market) and sales of tickets only $ 49 million at the box office World in December. The studio managed a few modest hits in the fourth quarter - "Battle: Los Angeles," for example - but was unable to find the kind of successful franchise pictures that have made big profits for competitors.
Sony is trying to address this shortfall by aligning expensive new installments of its "Spider-Man" and "Men in Black" series.
The only time that Sony has accumulated a greater annual loss was in 1995 when he plunged 293 billion yen in the red over large losses in its film division and cost control lax. Japan last devastating earthquake that hit the port city of Kobe in January this year, also weighed on earnings from Sony. But at the time, Sony's mainstay electronics business is still relatively strong. The fallout from the attacks of pirates can be just as worrying as the lingering effects of an earthquake on March 11. In an interview last week, Mr. Stringer has defended Sony's response to the attack, which some critics said it was too slow.
Sony is the last Japanese automaker to report income significantly lower after the magnitude 9 earthquake in March, which devastated much of the northeastern coast of Japan.
Earlier this month, Toyota, whose operations have been severely disrupted since the disaster, said that profit fell 77 percent for the quarter ended March 31. Toyota, which is likely to lose its crown as the largest carmaker in the world this year, said he could not forecast results or production for the coming year because of uncertainty about his ability to resume normal production levels.
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