Sony swings to profit; to sell PC ops, spin off TV ops


Sony (SNE) swung to a net profit of ¥27B ($257M) in FQ3 from a loss of ¥10.8B a year earlier but surprisingly forecast a loss for the year due to a major restructuring.

Revenue rose to ¥2.41T from ¥1.95T.

Operating profit +95% to ¥90.3B, beating consensus of ¥71.9B

Sony intends to spin off its flagship TV business, which has lost $7.5B over the past decade, into a separate wholly owned unit by July this year.

Sony has also agreed to sell its struggling Vaio PC business to restructuring specialists Japan Industrial Partners, although Sony will initially retain a 5% stake in the unit.

In addition, Sony intends to cut 5,000 jobs by the end of the year as part of a plan to save ¥100B a year in fixed costs.

The company will take take restructuring charges of ¥70B this FY, up ¥20B from a forecast in October. As a result, the firm projects a fiscal-year loss of ¥110B after earlier predicting a profit of ¥30B.

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Comments (11)
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    That's what corporations get from the globalized slavery economy. They need to sell at a loss... or not sell at all. Is it really worth it?! I hope so.
    6 Feb 2014, 05:50 AM Reply Like
  • sa_member_756157
    , contributor
    Comments (1364) | Send Message
     
    Sad truth is that with cheap foreign labor in the states, even "US-based" companies will make a profit at deep discount pricing. That's why the discount stores are doing so well, like TJMaxx..
    6 Feb 2014, 11:29 AM Reply Like
  • stevemkiidub
    , contributor
    Comments (252) | Send Message
     
    Not sure Samsung or Apple would know what your talking about. Sony is straddled with costs that they need to shake.
    6 Feb 2014, 07:58 AM Reply Like
  • rasanders22
    , contributor
    Comments (612) | Send Message
     
    Too bad. I like my Vaio.
    6 Feb 2014, 08:46 AM Reply Like
  • Captain Pike
    , contributor
    Comments (890) | Send Message
     
    After computers and TV are gone what's left?
    6 Feb 2014, 10:01 AM Reply Like
  • mitrado
    , contributor
    Comments (2033) | Send Message
     
    Games, Smartphones, Headsets, Music, Movies, Insurance, Banking...
    6 Feb 2014, 10:25 AM Reply Like
  • BornIn87
    , contributor
    Comments (111) | Send Message
     
    Check out their alpha-series cameras. Phenomenal.
    6 Feb 2014, 11:08 AM Reply Like
  • Captain Pike
    , contributor
    Comments (890) | Send Message
     
    Thanks guys, I incorrectly assumed playstation was part of "computers". So they still got that, a branchless banking operation and insurance that I did not know about. The others are a little too irregular or passe. I recently bought a walkman, but I am rare customer for that, they are far behind in the crowded smartphone market and music seems a tough business these days.
    As for their camera's, again passed by tech, I'll take the nokia lumia 1020 41 megapixel camera/phone. ........... Tough times for their segments.
    6 Feb 2014, 01:13 PM Reply Like
  • shiftdsme
    , contributor
    Comments (3) | Send Message
     
    Audio, Photography, Video Games, Semiconductors, Sony Mobile, Sony Computer Entertainment (mostly Playstation), Sony Pictures, Sony Music, Sony Financial Services
    6 Feb 2014, 02:06 PM Reply Like
  • Rwong8200
    , contributor
    Comments (161) | Send Message
     
    For years Sony sold the most expensive TV they had a infrastructure built for high cost. The technology improved Sony no longer had a edge. Today Samsung, Sharp and LG make better products and sell for the same or less. Don't really know where Sony will go maybe if they hadn't spent all that money on Michael Jackson?
    6 Feb 2014, 10:23 AM Reply Like
  • jakoba
    , contributor
    Comments (345) | Send Message
     
    Based on a google trends search for «vaio» suggests that the product saw gradual popularity up until 2009. Then it saw a significant decline over the next three years, before largely «stabilizing» in mid 2012. It is interesting that this corresponds with the super strong Yen. It is possible that the problem has mostly been about the Yen which made Samsung and other brands more popular because they could sell at lower prices (or put more/better technology in a similar device for the same cost). Between 2008 and 2012 the Yen strengthened by 50% against the Won, US dollar and Euro.

     

    Similarly the term "sony" on Google trends also stabilized mid 2012 after several years of decline.

     

    One can set up a chart for SNE from 1978 until today and compare with S&P 500 and see they followed each other more or less 100% over time - up until 2010. Then something obviously happened. And that something was likely mainly the super strong Yen.
    6 Feb 2014, 10:54 AM Reply Like
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