Sony reports $2.1 billion quarterly loss, $2.9 billion annual loss looming

By on February 2, 2012, 11:00 AM

Sony has posted a $2.1 billion net loss for the quarter ending December 31 and more than doubled their projected loss for the full year concluding in March. The once-strong Japanese electronics giant was up against a strong yen, weak TV sales, natural disasters in Japan and flooding in Thailand that disrupted supply chains across the globe.

Sony additionally noted a one-off charge to Samsung for bailing out of a flat panel joint venture and their decision to take full ownership of Sony Ericsson. As a result, quarterly sales dropped 17 percent.

Should the expected $2.9 billion loss pan out, it would mark Sony’s fourth consecutive year in the red. It goes without saying that CEO Kazuo Hirai will have his work cut out for him when he takes over for current CEO Howard Stringer effective April 1. At 51, Hirai will become the company’s youngest CEO to date. Sony shares have dropped more than 50 percent since Stringer took over as CEO and chairman in 2005.

Taking the podium at a news conference after being named CEO, Hirai said that Sony must steer a new course moving forward, even if it meant making many painful decisions and executing them. Hirai knows that his rivals and the operating environment won’t wait around for the company and action must be taken immediately.

An estimated net loss of $2.9 billion for the year ending in March is much higher than earlier estimates of around $1.2 billion. CFO Masaru Kato says Sony should be able to halve their losses in the TV market in the next fiscal year, however.

Photo courtesy Hiroko Tabuchi.

User Comments: 10

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H3llion H3llion, TechSpot Paladin, said:

one word..... ouch :3 I hope they wont go bust considering they have some nice products ...

Guest said:

Sucks for them. No one with a brain buys a sony when you can get a Samsung.

Guest said:

this is not for free, it came cuz they sucks, so if they give expensive product, and no competitive products (even if they have good ones) they are doomed, but will be hard, they are extreme big company...and again they need to reborn as a better company, competitive, innovative and more friendly to the users or they will perish on the try

RH00D RH00D said:

Seeing the way SONY treats customers in the last 10 years, I hope they keep sinking until they are sucked into a metaphorical black hole.

Guest said:

They must have hired a bunch of execs that lost their jobs in AMD's last round of firings.

Guest said:

Bye Sony you'll be missed. Oh wait... no you won't.

killeriii said:

Guest said:

Sucks for them. No one with a brain buys a sony when you can get a Samsung.

Guess it's a matter of opinion.

Don't forget, Samsung wouldn't be where it is if it wasn't for apple and the deals they had between them.

Guest said:

Sony's problem is they charge the highest prices for their products in the industry without being a market leader in any particular category. They either have to start producing really market leading electronics, or figure out a way to cut costs and drop prices to become more competitive in the eyes of consumers.

thewind said:

Guest said:

Sucks for them. No one with a brain buys a sony when you can get a Samsung.

LG is better! I have an 55lx9500 and the thing is just AMAZING! Also if you look at what people are saying about the new OLED TV (Samsung vs LG) People say the LG looks better!

Guest said:

Hey Sony ... SUE some more hackers ... it turns out well for you as you can see :)

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