Second Quarter Loss for Sony Corporation (ADR) (NYSE:SNE) Goes up to $196 Million
(ADR) (NYSE:SNE)’s TV operations fell back to be red bringing to light the problems company has been facing in once again drawing profits from its operations of electronic hardware. Sony Corporation downsized its profit goals and revealed its September quarter’s net loss.
According to Sony Corporation its quarterly net loss expanded from last year’s 15.5 billion Yen loss to $196 million which is equal to 19.3 billion Yen; the three-month quarter ended on September 30th. Thomson Reuters analysts polls estimated a 12.08 billion Yen quarterly net profit.
Company’s operating profit went down by 51% – dropped from 30.3 billion Yen to 14.8 billion Yen – even though its revenue went up by 11% – revenue increased from 1.6 trillion Yen to 1.78 trillion Yen. According to Sony the loss for its second quarter was mostly due to the company’s movie business that suffered a 17.8 billion Yen of operating loss for the quarter; last year the company saw a 7.9 billion Yen profit.
Sony’s latest results for the quarter will be worrisome for investors who are waiting for company’s earnings to show some recovery sings. The company revealed its net profit for the first time in the last five years; the results revealed were for last year, which ended in March. Sony was way behind Samsung Electronics Co., Ltd. (KRX:005930) and Apple Inc. (NASDAQ:AAPL) in the business for smartphones; moreover, Sony’s TV business also didn’t produce any major profits.
For its fiscal year, Sony downsized its outlook for net profit to 30 billion Yen; this forecast was given to be 50 billion Yen back in July. It also had to decrease its outlook for operating profit from 230 billion Yen to 170 billion Yen from 230 billion yen; the forecast for revenue was brought down from 7.9 trillion Yen to 7.7 trillion Yen.
Sony’s mobile product (including smartphones) and communication division for the quarter witnessed an operating loss shrink down from last year’s 23.1 billion Yen to 900 million Yen; both division’s revenue increased by 39%.
In the premarket, shares of Sony Corporation (ADR) (NYSE:SNE) went down by -6.08% ($18.24) whereas shares of Apple Inc. (NASDAQ:AAPL) went up by 0.12% ($525.80).