TMCnet News
Sony UPDATE1(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, May 22 -- (Kyodo) _ (EDS: RECASTING WITH NEW INFO) Sony Corp. revised downward on Wednesday its earnings targets for imaging business and gaming operations, core operations in its electronics business, for the fiscal year ending in March 2015, while vowing to make the business profitable in the current fiscal year. Sony slashed its sales target for the imaging business to 1.3 trillion yen from 1.5 trillion yen announced last year, and cut its target for operating profit margin in the gaming business to 2 percent from 8 percent on advertising and promotion costs for PlayStation 4 to be launched later this year. "Making our electronics operations profitable still remains a vital task," Sony President Kazuo Hirai said at a press conference. In fiscal 2012 ended in March, Sony's television business -- a money-losing sector in the electronics segment -- remained in the red for the ninth straight year, with sales in the segment dropping around 31 percent from the year before. Sony is aiming to post sales of 6 trillion yen and an operating profit margin of 5 percent for its electronics operations in the business year ending in March 2015. Hirai also said the company has started to discuss a proposal by U.S. hedge fund Third Point LLC to sell around a 15 percent to 20 percent stake in Sony's entertainment business in an initial public offering. Hirai met last week with billionaire Daniel Loeb, chief executive officer of Third Point -- the largest shareholder in Sony -- when the hedge fund made the proposal to revive its electronics business. "It's a critical issue that affects Sony group's core business and the direction of our management," Hirai said at a corporate strategy meeting held in Tokyo. "We'd like to respond to Third Point after having sufficient discussions by the board of directors." He added that no timetable is set for a response. Sony's entertainment business centering on movie and music operations, together with its financial services, is one of the divisions generating profits to cover its losses from the electronics business. Sony has issued a statement, saying, "The entertainment businesses are important contributors to Sony's growth and are not for sale." The Japanese electronics maker kept intact its earnings target for three years through fiscal 2014, aiming to book group sales of 8.5 trillion yen and an operating profit margin of over 5 percent. (c) 2013 Kyodo News International, Inc. |