Another Stinker From Sony
Sony (SNE) lost 26.3 billion yen ($289 million) for the period, considerably narrower than a 40.4 billion yen consensus estimate. Sales and operating revenue for the quarter fell to 1.66 trillion yen from 2.07 trillion yen a year earlier, dragged down by a strong yen, flaccid consumer demand and fierce price competition for videogame consoles and TVs.
Looking ahead, Sony improved the outlook for its fiscal year, saying it expects annual losses of 95 billion yen this year, a slight improvement over its initial estimate of 120 billion yen. Still, the company warned that the all important Christmas shopping period would likely be a weak one. “We are quite cautious in foreseeing end-of-year sales,” Sony CFO Nobuyuki Oneda said during a conference call with analysts. “In the first quarter and second quarter there was an upside in sales, but the critical moment is the Christmas season and we are not too optimistic.”