Sony records another $2.2 billion loss

Japanese electronics maker, Sony Corporation has said that it is heading for a fourth major loss as the year glides to an end saying that its annual net for its TV business alone is costing the company $2.2 billion.The loss which is due to tumbling demand and a surging yen , is coming at a time when the makers of Bravia TVs, Vaio computers and PlayStation game consoles are cutting their sales forecast for TVs, cameras and DVD players resulting to $1.1 billion net loss in the current financial year, scrapping its earlier net profit estimate of 60 billion yen.Investors had expected Sony to reduce its profit forecast, but not flag a swing to massive losses.Sony vowed to bring an end to losses in its TV division, which it expects to report its eighth straight annual loss. But it gave little details of a plan to halve losses next year and drag the unit into the black by March 2014."I am surprised at the extent of the losses and I was anticipating TV restructuring, so I feel let down on both counts," said Shigeo Sugawara, senior investment manager at SompoJapanNipponkoa Asset Management, which owns Sony shares."We were focused on what would happen to Sony's TV division, but I don't see any drastic restructuring steps, in fact I can't even see any signs they've begun to cut," he added.Sony said it would revamp LCD panel procurement, but second-in-command Kazuo Hirai declined to comment on reports it would end a panel joint venture with Samsung Electronics.The lack of firm details from Hirai dashed investor hopes that the once-stellar brand is at last getting to grips with its struggling TV business and can challenge smartphone rivals.Sony said that it expected TV losses to be 175 billion yen ($2.2 billion) this financial year, including a 50 billion yen impairment charge adding that it cut TV sales forecast by 9 percent to 20 million sets, its second reduction this year.
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