Sony Q4 loss widens, sees sharp upturn ahead
TOKYO, May 16 (Reuters) - Sony Corp. reported a wider quarterly loss on Wednesday due to losses in its game unit, but it forecast a sharp rise in profit this year as it boosts sales of its PlayStation 3 video game machine and LCD TVs.
The Japanese electronics and entertainment conglomerate was hit hard last year by massive costs to launch the PlayStation 3 (PS3) and recall 9.6 million units of its laptop PC batteries, which in rare cases could catch fire from overheating.
But it is taking steps to cut production costs for the PS3 and is starting up an advanced liquid crystal display (LCD) panel plant with Samsung Electronics Co. Ltd. this year, which should help it make TVs more efficiently.
Sony, locked in a battle with Microsoft Corp. and Nintendo Co. Ltd. for dominance in the $30 billion video game industry, forecast an operating profit of 440 billion yen ($3.66 billion) for the year to March 2008.
The estimate represents a six-fold gain on 2006/07 and beats the consensus of 377.8 billion yen in a poll of 20 analysts by Reuters Estimates, though it includes a 59 billion yen profit from a sale of land not likely reflected in the consensus.
Sony expects sales to grow 5.8 percent to 8.78 trillion yen.
Read the full article here...Aiko Wakao and Nathan Layne
May 16, 2007
Source: Reuters