Sony Says Recall Strains Battery Production [New York Times]
Summary: Yesterday, Sony admitted its notebook PC lithium-ion battery recall now totaling 9.6 million units, is straining its production capacity and could result in lost business. Yutaka Nakagawa, Sony's executive VP, told reporters Sony lacked adequate supply to both replace recalled batteries and manufacture batteries for new notebook PC sales. Its battery business is said to account for 2% of group revenue. Sony has estimated recall costs to be 51 billion yen ($429 million), forcing it to cut its full-year operating profit guidance. Sanyo is Sony's chief competitor in notebook battery production and stands to benefit from Sony's woes.
Related links: Sony Press Release on Battery Replacement Program • Sony Profit Forecast Drops 39% Due to Battery Recall, Sluggish Sales • Another Blow For Sony: Consumer Electronic Companies May Seek Damages for Battery Recall • Update on Sanyo's Forthcoming Delisting • Is the Worst Over for Sony's Stock? • Sony's Battery Recall Costs Mounting
Potentially impacted stocks and ETFs: Sony (NYSE:SNE), Sanyo (OTC:SANYY), BLDRS Asia 50 ADR Index ETF (NASDAQ:ADRA)
Seeking Alpha is not affiliated with New York Times.