Sony Corp. (SNE,SON.L) on Thursday reported wider net loss in its first quarter, reflecting higher restructuring charges and sharp decline in television sales amid slowing global economy, and the appreciation of yen. Revenue increased on the consolidation of Sony Mobile Communications AB as its unit.
Citing further deterioration in the economy and uncertain foreign exchange rates, the Japanese electronics giant trimmed its forecast for fiscal year ending March 31, 2013.
First-quarter net loss attributable to Sony stockholders was 24.64 billion yen or $312 million, compared to prior year's loss of 15.5 billion yen. Loss per share widened to 24.55 yen or $0.31 from 15.45 yen last year.
The latest quarter results were hurt by restructuring charges of 11.3 billion yen or $143 million, higher than last year's 1.8 billion yen. The results also were impacted by deterioration in Mobile Products & Communications or MP&C segment performance and unfavorable foreign exchange rates.
Before taxes, the company generated income of 9.4 billion yen, but 59.3 percent lower than last year. Operating income plunged 77.2 percent to 6.3 billion yen.
Sales and operating revenue grew 1.4 percent to1.52 trillion yen from 1.49 trillion yen in the prior-year quarter. On a constant currency basis, sales increased 5 percent year-over-year.
On a pro forma basis, consolidated sales would have decreased by approximately 7 percent as sales in the Home Entertainment & Sound segment decreased 26.2 percent due to lower LCD television unit sales in Japan, North America and Europe. In Televisions, sales decreased 35 percent year-on-year.
Sales in the Mobile Products & Communications climbed 132.9 percent on the consolidation of Sony Mobile and higher average selling prices and higher unit sales of smart phones. The increase was partially offset by lower sales of PCs mainly resulting from price declines. Meanwhile, the segment slipped to operating loss due to the impact of lower sales of PCs and the impact associated with the acquisition of Sony Mobile.
In the Imaging Products & Solutions segment, which makes digital imaging products, sales increased 7.6 percent mainly on higher demand for interchangeable single lens cameras.
Sales of games were hurt by lower sales of hardware and software of the PlayStation Portable and PlayStation 3 and music sales were hurt by continued worldwide contraction of the physical music market. However, pictures' sales were benefited from higher theatrical revenues, partially offset by lower advertising revenues from Sony's television networks in India.
Looking ahead to the fiscal year, the company now expects attributable net income of 20 billion yen, compared to prior outlook of 30 billion yen. Sales and operating revenue is now projected to be 6.8 trillion yen, 8.1 percent lower than earlier estimate of 7.4 trillion yen.
In the previous year, attributable net loss was 456.7 billion yen and sales and operating revenue was 6.49 trillion yen.
In Japan, Sony shares closed Thursday's trading at 964 yen, up 23 yen or 2.44 percent.
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