Sony coy on reports of $1.1b loss

14 Jan 2009
00:00

Electronics giant Sony has posted a "no-comment" on reports that it is headed for its first loss in 14 years for the financial year ending in March.

"Sony understands that a story appeared in the media regarding Sony's expectations on operating results for the fiscal year ending March 31, 2009," reads a terse statement on the company's global website. "Sony has made no announcement in this regard and at this time has no further comment."

Reuters, quoting an insider source, yesterday reported that Sony is expecting to post a 100 billion yen ($1.1 billion) loss for the financial year.

A Financial Timesround-up of financial analysts also expects to Sony to go into the red.

The company cut its profit forecast by 57% in October, but was still projecting profits of around 200 billion yen ($2.2 billion). Last year, Sony also announced an intention to cut 8,000 jobs, or around 5% of the company's workforce.

Sony has also been hurt by the strong performance of the yen relative to the US dollar. The Yomiuri Shimbun reports that Sony's operating losses based on the appreciation of the yen alone are likely to reach beyond 100 billion yen.

Sony will release its Q3 results on January 29.

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