Sony warns of ballooning full-year loss | FT Alphaville

Sony warns of ballooning full-year loss

Sony warned it would suffer a Y220bn ($2.9bn) net loss for the full year, a much larger deficit than it had previously forecast, as it embarks on an expensive restructuring of its unprofitable television business, the FT reports. The Japanese group’s new guidance for the financial year ending in March compares with an earlier loss estimate of Y90bn and is more pessimistic than experts had expected. Industry analysts tracked by Bloomberg had been projecting a loss of Y147bn. Thursday’s downgrade reflects the cost of dissolving a TV panel-making joint venture between Sony and Samsung of South Korea, a move that Sony says will force it to book a non-cash impairment charge of Y66bn. Sony is also writing off TV production facilities in Japan and scaling back its sales targets. The electronics and entertainment group announced on Wednesday that Kazuo Hirai, its 51-year-old deputy president, will take over as president and chief executive in April, confirming a widely anticipated change of leadership. Mr Hirai will take on most of the responsibilities currently held by Sir Howard Stringer, the Wales-born American who has been Sony’s chief executive since 2005 and will stay on as chairman.