Business World

Tuesday 16 January 2018

Grim results as Sony suffers from strong Yen, poor sales and natural disasters reporters

SONY has slumped to a first-half net loss and slashed its annual forecast, stung by the impact of a strong yen, weak TV sales and natural disasters at home and in Thailand.

Sony posted a first-half net loss of $552m while cutting earlier forecasts for an annual profit to new expectations of a full-year loss of more than $1bn.

The Japanese company has been badly hurt by the strength of the yen, which has hit sales outside Japan, particularly in Europe. Sony's loss-making television business remains a burden amid fierce competition and falling prices in the liquid crystal display market.

Sony said that six-month sales in its consumer products and services segment - which includes TVs, personal computers and its PlayStation gaming system - were hit by poor demand.

A massive data breach forced Sony to shut down its PlayStation Network and Qriocity services in April with more than 100 million customer accounts compromised, in a crisis that quickly followed the March disaster.

The firm was forced to shut plants in Japan after the quake and tsunami battered supply chains, damaged facilities and dampened consumer demand.

Now flooding in Thailand has presented similar problems.

Production at several manufacturing facilities has been stopped, while it has been forced to postpone certain product launches.

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