Sony returns to profit in Q1
Published 29/07/2010 | 11:21
Electronics giant Sony raised its full-year earnings forecasts after sales of TVs and game consoles helped the company to an unexpected profit last quarter.
Net income will probably be 60 billion yen (€526m) in the year ending March 2011, compared with an earlier projection of 50 billion yen, the Tokyo-based company said in a statement today.
Operating profit, or sales minus the cost of goods sold and administrative expenses, may be 180 billion yen, compared with the 160 billion yen forecast in May.
Chief Executive Officer Howard Stringer has started to focus on new products as the global economic recovery revives consumer demand.
In May the maker of Bravia TVs and PlayStation 3 game consoles unveiled the prototype of a set that will deliver video and music over the Internet in partnership with Google and started selling 3D TVs in the US, Europe and Japan last month.
“Demand for TVs continued to be strong in China and Japan and Sony has sold its new models without cutting prices significantly,” Yasuo Nakane, a Tokyo-based analyst at Deutsche Bank said before the results were announced. He has a “hold” rating on the stock.
Sony added 0.1pc to close at 2,611 yen in Tokyo trading before the announcement, narrowing its loss this year to 2.2pc.
Panasonic, Sony’s closest domestic rival, has lost 19pc, while the benchmark Nikkei 225 Stock Average has declined 8.1pc this year. Samsung Electronics has advanced 3.5pc.