Sony Slashes Earnings Outlook as Attacks on U.S. Take Economic Toll28 Sep, 2001 By: Hive News
Japanese electronics andentertainment giant Sony Corp. on Friday cut its earnings outlook for the fiscal year as the company saw hopes dim for a global economic recovery.
Sony now expects a net profit of $84 million). The company said that revisions in projections were necessitated partly by the global impact of the Sept. 11 attacks in the U.S.
"Further ramifications of these events remain uncertain, and it is difficult for Sony to estimate the overall impact," the company said in a statement, the Associated Press reported from Tokyo.
This latest revision follows one in July when Sony said it expected $755 million inprofits for the fiscal year ending in March 2002, lower than its April forecast of $1.3 billion, according to the AP.
Sony also cut its group sales forecast to $63 billion. Currency fluctuations will also hurt earnings, the company said.
Profits are also expected to shrink in computer chips and personal computer parts because of a slowdown in sales, the company said.
Sony will spend an additional $252 million in restructuring expenses toward a total for the fiscal year of $420 million to discontinue unprofitable businesses and reduce assets, it said.
Sony also said it will cut costs in purchases by turning to competitive suppliers around the world, the AP reported.
For the first quarter ending in June, Sony posted operating losses in its electronics, video games andmovie divisions, posting a group net loss of $252 million for the three-month period.