Sony's Q2 Earnings Tank on Battery Recall Costs, PS3 Development

Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Sony 2nd-Quarter Profit Falls 94% on Battery Recall [Bloomberg]

Summary: Sony reported net income fell 94% in Q2 to 1.7 billion yen ($14 million), or 1.6 yen/share, versus 28.5 billion yen, or 27.32 yen, last year. The weak results are in-line with its earnings warning last week, attributed to costs related to PlayStation 3 development and its battery recall. It reported an operating loss totaling 20.8 billion yen ($174 million), compared to a profit of 74.6 billion yen last year, hurt by a 51.2 billion yen ($429 million) charge for battery recall-related costs. Meanwhile, revenue grew 8.3% to 1.85 trillion yen ($15.5b), driven by Bravia LCD TVs, Vaio computers and Cyber-shot digital camera sales.
Related links: Q2 FY2006 Sony Group Earnings Announcement • Earnings coverage: Reuters and Forbes.com XFN Asia • Sony Profit Forecast Drops 39% Due to Battery Recall, Sluggish Sales • Sony's Battery Production Capacity Strained, Sanyo to Benefit • Sony's 15,000 PS3 Kiosks: Marketing Par Excellance • Is the Worst Over for Sony's Stock?
Potentially impacted stocks and ETFs: Sony (SNE), BLDRS Asia 50 ADR Index ETF (ADRA)

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