Sony misses forecast by $5bn
Paul Milligan, January 26, 2009
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Sony has admitted its annual operating forecast – made in October 2008 – was out by $5 billion. The company had predicted a profit of $2bn, it’s now expected to report a loss of $3bn in the year to March. This will be Sony’s first loss in 14 years, and only the second since the company was listed on Tokyo’s stock exchange in 1958.
There are three reasons for this dramatic turnaround;
- the yen has outperformed expectations, with 80 per cent of Sony’s sales coming from overseas
- the economic climate has seen prices sold for lower prices than forecast
- the economic downturn has also hit demand for its products.
The company announced in December it was pulling out of the ISE 2009 exhibition entirely and it was to cut 8,000 jobs as well as shutting 10 per cent of its manufacturing sites.
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