Sony warns of a ballooning annual loss of $2.86 billion
In its recent warning of a ballooning full-year loss, Sony said that a weak economy, natural calamities, and a strong yen have apparently taken a toll on the company's earnings, with its annual loss figures likely to touch Y220 billion
(or $2.86 billion).
Citing reasons like the cost of streamlining its losses-ridden TV business, the supply-disrupting Thailand floods, and the surging yen, Sony said that all these factors contributed to the company's products becoming more expensive in overseas markets.
As a result, Sony is heading in the direction of a $2.86 billion loss in its current fiscal year ending March 31; thereby marking that the figures will mark the worst-ever annual results for the Japan-based technology and entertainment giant.
The projections of the full-year loss by Sony are over two times higher that the loss figures the company has estimated barely three months back, when it said that it was expecting a $1.2 billion loss for its ongoing fiscal year.
Despite the fact that a large chunk - approximately $1.5 billion - of the total annual losses projected by Sony will largely be an upshot of one-time charges undertaken by the company, analysts are of the opinion that nearly $181 million of the total annual looses would probably result from that company's weak overall performance.
Noting that "the raw numbers make it look worse than it actually is," analyst Andy Hargreaves - with Pacific Crest Securities - said that there were no two ways about the fact that "it definitely has not been a good year for Sony."
