Japanese consumer electronics giant Sony Corp. (SNE) on Wednesday said it has appointed its Executive Deputy President Kazuo Hirai as the new president and chief executive officer, effective April 1. Hirai will replace Sir Howard Stringer, who is also the Chairman of the company currently.
Stringer would continue as its Chairman until June when he would be appointed as Chairman of the Board of Directors, following the retirement of current Chairman Yotaro Kobayashi. The appointment is effective upon board approval following the annual meeting of shareholders in June. The Welsh-born Stringer, who was with CBS Television Network in the U.S. earlier, was named Sony's Chief Executive in 2005.
The maker of PlayStation consoles and Bravia television sets added that Hirai would be named to the board at the June shareholders meeting. The appointment of Hirai follows Stringer's recommendation to the Board of Directors culminating the 3-year long succession plan.
Commenting on the management change, Stringer noted that Hirai had distinguished himself through his work in the PlayStation and networked entertainment businesses.
Stringer added, "I believe his tough-mindedness and leadership skills will be of great benefit to the company and its customers in the months and years ahead. I look forward to helping Kaz in every way I can so that succession leads inevitably to success. ...he is ready to lead, and the time to make this change is now."
Hirai added, "As challenging as times are for Sony now, were it not for the strong leadership of Sir Howard Stringer these past seven years, we would have been in a much more difficult position."
In November last year, Sony reported a loss for the second quarter and slashed its fiscal year 2012 forecast to a loss, citing the yen appreciation, the Thailand floods and lower than expected sales in the U.S. and Europe. Sony is currently projecting a fiscal year net loss attributable to stockholders of 90 billion yen. Sales and operating revenue for the year are expected to be 6.5 trillion yen, significantly lower than 7.2 trillion yen projected earlier.
Hirai further said today, "The path we must take is clear: to drive the growth of our core electronics businesses - primarily digital imaging, smart mobile and game; to turn around the television business; and to accelerate the innovation that enables us to create new business domains."
In Japan, Sony shares closed Wednesday's trading at 1,364 yen, down 27 yen or 1.94 percent.
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