Sony shares sink on massive loss forecast |
| Reuters - Nov 2, 2011 |
Sony Corp warned of a fourth straight year of losses, with its television unit alone set to lose $2.2 billion on tumbling demand and a surging yen, sinking its U.S. shares and raising concerns about the viability of its high-profile TV business.
Investors had expected Sony to reduce its profit forecast, but not flag a swing to massive losses.
The maker of Bravia TVs, Vaio computers and PlayStation game consoles cut its sales forecast for TVs, cameras and DVD players on Wednesday and said it may report a 90 billion yen ($1.1 billion) net loss for the current financial year, scrapping its earlier net profit estimate of 60 billion yen.
Sony U.S.-listed shares were down 6.8 percent at $18.36 in afternoon trading.
"When you have competitors like LG (Corp ) and Samsung so aggressively attacking the (TV) market, it really does hurt margins," said Michael Yoshikami, chief executive of YCMNET Advisors, adding that Sony needs to compete on price. "If they can't, they need to get out of the (TV) business."
Read Full Article from Reuters
- Posted: 2011-11-02 13:27:33
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