As expected, Sony just announced dismal earnings for the quarter and projected year. The company expects to post a ¥90 billion ($1.2 billion) net loss for the financial year on the heels of an unexpected quarterly loss of ¥27 billion. It had expected ¥60 billion in net income for the year. Sony blames the strong yen and flooding in Thailand for its recent woes in addition to sluggish television sales in the US and Europe.
Sony cut its annual sales forecast for televisions by nine percent, down to 20 million units from the 22 million units originally projected. It also says that it expects to sell 23 million compact cameras (not 24 million) through the year ending in March. As a result, Sony is cutting its full year operating profit outlook by 90 percent. Sony did not make any formal announcement regarding the rumored dissolution of its flat-screen venture with Samsung.
When the fiscal year is done, Sony will have lost almost $8.5 billion from televisions over the last eight years. And while Sony has executed upon plans to restructure its TV business in the past, it has yet to successfully return the division to profitability. As such, there's little reason to trust management's latest "TV Business Profitability Improvement Plan" which aims to return the business to profitability by March 31, 2014.