ID :
183914
Mon, 05/23/2011 - 18:24
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https://oananews.org//node/183914
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Sony to fall into red for 3rd year in FY 2010
TOKYO, May 23 Kyodo - Sony Corp. said Monday it expects to fall into the red in fiscal 2010 for the third straight year with a group net loss of 260 billion yen due mainly to the effects of the March 11 earthquake and tsunami.
It would be the company's biggest net loss since it posted red ink of 293.3 billion yen in the business year ended March 1995.
The electronics giant has been in the red on a net balance basis since fiscal 2008, when the company was hit by the global economic downturn following the bankruptcy of Lehman Brothers Holdings Inc. in September 2008.
Sony said it has booked a non-cash charge of around 360 billion yen against certain deferred tax assets in Japan as the company anticipates that its profitability in the current fiscal year is likely to deteriorate from what it had expected prior to the March disaster.
The company faced the need to assess the future effects of the disaster on its profitability in order to evaluate Sony's domestic deferred assets especially after three years of net losses, Chief Financial Officer Masaru Kato told a news conference.
''The supply chain has been significantly damaged due to the quake and tsunami,'' Kato said. ''Besides direct effects, there are also effects from parts procurement and rolling blackouts.''
Sony had earlier expected to post a group net profit of 70 billion yen for the year ended March 31.
The company left its group operating profit estimate unchanged at 200 billion yen but is now expecting to book sales of 7.18 trillion yen, down from the earlier projected 7.2 trillion yen.
For this fiscal year, however, the company expects to book an operating profit of around 200 billion yen and return to profitability despite costs related to addressing damage from the disaster and a data breach that affected over 100 million accounts mainly of its PlayStation gaming network.
Sony said it expects to see a negative impact of about 150 billion yen on its operating balance in fiscal 2011 due to the earthquake and tsunami, while around 14 billion yen on the operating level is likely to be required for tackling the data breach issue.
''The 14 billion yen represents an estimate of what can be calculated reasonably based on information that we are aware of at this point,'' Kato said.
''Currently, we have not received reports of unauthorized use of personal information or credit cards,'' Kato said. ''If the situation changes, the amount of costs could change.''
The company is scheduled to announce its fiscal 2010 earnings on Thursday
It would be the company's biggest net loss since it posted red ink of 293.3 billion yen in the business year ended March 1995.
The electronics giant has been in the red on a net balance basis since fiscal 2008, when the company was hit by the global economic downturn following the bankruptcy of Lehman Brothers Holdings Inc. in September 2008.
Sony said it has booked a non-cash charge of around 360 billion yen against certain deferred tax assets in Japan as the company anticipates that its profitability in the current fiscal year is likely to deteriorate from what it had expected prior to the March disaster.
The company faced the need to assess the future effects of the disaster on its profitability in order to evaluate Sony's domestic deferred assets especially after three years of net losses, Chief Financial Officer Masaru Kato told a news conference.
''The supply chain has been significantly damaged due to the quake and tsunami,'' Kato said. ''Besides direct effects, there are also effects from parts procurement and rolling blackouts.''
Sony had earlier expected to post a group net profit of 70 billion yen for the year ended March 31.
The company left its group operating profit estimate unchanged at 200 billion yen but is now expecting to book sales of 7.18 trillion yen, down from the earlier projected 7.2 trillion yen.
For this fiscal year, however, the company expects to book an operating profit of around 200 billion yen and return to profitability despite costs related to addressing damage from the disaster and a data breach that affected over 100 million accounts mainly of its PlayStation gaming network.
Sony said it expects to see a negative impact of about 150 billion yen on its operating balance in fiscal 2011 due to the earthquake and tsunami, while around 14 billion yen on the operating level is likely to be required for tackling the data breach issue.
''The 14 billion yen represents an estimate of what can be calculated reasonably based on information that we are aware of at this point,'' Kato said.
''Currently, we have not received reports of unauthorized use of personal information or credit cards,'' Kato said. ''If the situation changes, the amount of costs could change.''
The company is scheduled to announce its fiscal 2010 earnings on Thursday
