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Sony group net profit up 8.6-fold to 26.81 bil. yen. in April-June(Japan Economic Newswire Via Acquire Media NewsEdge) Sony Corp. said Thursday its group net profit in the April to June quarter rose nearly 8.6-fold to 26.81 billion yen due to strong sales of its gaming console and the yen's depreciation. The electronics company's consolidated operating profit surged 96.7 percent to 69.81 billion yen on sales of 1.81 trillion yen, up 5.8 percent on year. The company's earnings were shored up by a solid performance for its newly launched PlayStation4 home-gaming console, which contributed to an operating profit of 4.3 billion yen in the game and network services segment, in a sharp turnaround from a loss of 16.4 billion yen the previous year in the quarter. Sales of certain buildings and premises at the Gotenyama Technology Center in Tokyo also positively impacted its operating profit by 14.8 billion yen in the three-month period. However, Sony cut its fiscal 2014 smartphone sales target to 43 million units from 50 million units announced in May and revised downward the mobile communications segment's operating profit by 26 billion yen to zero amid worse-than-expected outlooks in emerging markets such as China and Latin America. "We were too optimistic (in compiling the earlier estimate)," Chief Financial Officer Kenichiro Yoshida said at a press conference in Tokyo, adding the company will come up with country-specific strategies for smartphones and review its product lineups. Sony also cut its full-year sales target for liquid crystal display televisions to 15.5 million units from the earlier estimated 16 million units. On the flagging electronics business, Yoshida said the sector still remains in the red for the three-month period, adding, "We have to steadily implement our restructuring measures." As part of such measures, the company sold its Vaio personal computer business to a Tokyo-based investment fund and split its television operation into a wholly owned unit in July. It also announced earlier this week it is to sell the land occupied by its headquarters in a prime Tokyo business district to a subsidiary in September for 52.8 billion yen to raise funds to bolster its electronics business. For the current business year ending next March, Sony left unchanged its group sales and earnings projections, expecting to see the sixth annual loss in seven years. The company is expected to incur a consolidated net loss of 50 billion yen against a loss of 128.40 billion yen in the preceding year. Its operating profit is forecast to surge 428.4 percent to 140 billion yen, on sales of 7.8 trillion yen, up 0.4 percent. Meanwhile, Sony also announced it is establishing a new company with Japan Display Inc. and Panasonic Corp. to develop organic light-emitting diode display panels by integrating their technological expertise. Innovation Network Corp. of Japan and Japan Display will hold a 75 percent and 15 percent stake each in JOLED Inc. due to be set up next January. Sony and Panasonic will own a 5 percent stake each. (c) 2014 Kyodo News |