Sony Loss Widens on PC Business Exit
Struggling Electronics Maker Now Expects $1.27 Billion Net Loss for Last Fiscal Year
A logo of Sony Corp is seen on its VAIO laptop at its showroom in Tokyo. Reuters
TOKYO—Sony Corp. said Thursday it expects a wider group net loss for the just ended fiscal year as the cost of disposing of its PC business weighed on the company as a whole.
The hard-hit Tokyo-based electronics maker now predicts a ¥130 billion ($1.27 billion) group net loss for the business year that ended in March compared with its earlier projection for a ¥110 billion loss.
Sony said it expects to book an additional ¥30 billion cost related to its PC businesses and a ¥25 billion write-off related to overseas disk manufacturing operations.
As part of its drastic restructuring measures Sony said in February it will sell its Vaio PC business to turnaround fund Japan Industrial Partners Inc. and split off its money-losing TV division into a separate subsidiary.
The moves underscore Sony's continuing struggle to turn around an electronics business that is bleeding cash. The Japanese company achieved global fame, and decades of profits, with innovative devices such as the Walkman portable music player and Trinitron TV. Electronics products remain at Sony's core, generating about 70% of its revenue.
Last month the company said that it will sell its entire stake in Square Enix Holdings Co., or 8.2% of the videogame maker's issued shares, for ¥15.3 billion.
Sony said Thursday that it will also release its earnings projections for the current fiscal year along with its results for last year on May 14.