- 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.
- Press releases: Earnings; TV spin-off; Vaio sale
Sony swings to profit; to sell PC ops, spin off TV ops
Feb 6 2014, 02:37 ET