Sony reports first loss in 14 years

”Sony

Japanese electronics giant Sony has today announced its first annual loss in 14 years.

The group reported a loss of 98.9 billion yen (£685 million) for the year ended 31 March, against a profit of 369.4 billion yen the previous year.

Following the company’s first back to back loss since 1958, Chief Executive Officer, Howard Stringer, has said that there will be a renewed focus on reducing costs, as well as investments in creating a new range of products.

In December, Sony announced that there would be 8,000 full-time job cuts in the electronics division and spending would be cut back by some 30 percent, with the closure of factories in both France and Pennsylvania.

The company has been able to save 250 billion yen through these measures, although this has had an impact on sales as the PlayStation 3 has fallen behind Nintendo in the games console market. Meanwhile, TV sales have fallen behind Samsung, which are the company’s main competitors.

Sony had predicted sales to fall by 5.6 percent to 7.3 trillion yen and this was reflected in the 168.1 billion yen loss in the main electronics division.

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