Japanese consumer electronics company Sony Corp. (SON.L, SNE), Wednesday, at its Corporate Strategy Meeting, said it expects to achieve financial targets for fiscal year 2014 announced on April 12. The firm aims returning electronics business to profit in fiscal year ending March 31, 2014, and said it continues to strengthen the overall financial foundations of the Group.
The company was earlier expecting full-year sales of 8.5 trillion yen, operating income margin of more than 5 percent and return on equity of 10 percent for the Sony Group overall. For its electronics business, Sony sees sales of 6 trillion yen and operating income margin of 5 percent for the year.
In fiscal year, within the electronics business, Sony continues to implement the five key initiatives announced in April 2012. Taking into account changes in the business environment, it updated its strategies for the three core electronics businesses. In the entertainment and financial services businesses, it will seek to further strengthen profitability, Sony said.
Meanwhile, Nikkei business daily reported Tuesday that Sony is considering evaluation of a proposal to spin off its entertainment business. At a board meeting on Wednesday, Sony will reportedly consider a proposal from its major shareholder, U.S-based hedge fund ThirdPoint LLC, to spin off the movie and music business. ThirdPoint owns a 6.5 percent stake in Sony.
ThirdPoint is said to have urged Sony, the maker of the PlayStation game console, Xperia smartphones and Bravia television sets, to spin off the entertainment business so that the company can use proceeds from the subsequent stock sale to reconstruct its money-losing electronics business.
Sony said today that Mobile, Imaging and Game businesses will continue to be the core businesses that drive its electronics business growth. Sony anticipates that about 65 percent of total sales and nearly 80 percent of operating income for the entire electronics business will be generated by these three businesses by fiscal year 2014.
It also aims returning its TV business to profitability. In emerging markets, the company expects continued growth, and plans to launch models tailored to meet local needs in order to increase sales volumes.
According to the company, it will continue to commercialize new sensor technologies in the Imaging Businesses. It also targets further business growth by extending the scope of its digital imaging technologies to new business areas such as security, sports and medical.
Regarding its Game Business, Sony stated that its next generation platform "PlayStation 4" or PS4 will launch this year-end holiday season. PS4 will enable smartphone and tablet users to share in the enjoyment of PS4, even without owning one themselves, the firm added.
In Tokyo, the shares closed on Wednesday at 2,290 yen, up 5.87 percent.
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