This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7843982.stm
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Sony sees first loss in 14 years | Sony sees first loss in 14 years |
(about 1 hour later) | |
Electronics giant Sony has said it is going make its first annual loss in 14 years as the global economic slowdown hits demand for its products. | Electronics giant Sony has said it is going make its first annual loss in 14 years as the global economic slowdown hits demand for its products. |
For the financial year ending in March, Sony said it expected to make a net loss of 150bn yen ($1.7bn, £1.2bn). | For the financial year ending in March, Sony said it expected to make a net loss of 150bn yen ($1.7bn, £1.2bn). |
The company also blamed a strong yen for making its exports more expensive. | The company also blamed a strong yen for making its exports more expensive. |
Sony had forecast as recently as October that it would make a profit this year. The expected loss was much bigger than analysts had anticipated. | Sony had forecast as recently as October that it would make a profit this year. The expected loss was much bigger than analysts had anticipated. |
Last year, Sony made a profit of 369.4bn yen, but its fortunes have changed as the global downturn has hit home. | Last year, Sony made a profit of 369.4bn yen, but its fortunes have changed as the global downturn has hit home. |
Currency fluctuations | |
In October, it cut its profit forecast in half and shortly after announced it would lay off 8,000 employees and shut some manufacturing plants. | In October, it cut its profit forecast in half and shortly after announced it would lay off 8,000 employees and shut some manufacturing plants. |
Sony is particularly sensitive to currency fluctuations since about 80% of its sales come from overseas. | Sony is particularly sensitive to currency fluctuations since about 80% of its sales come from overseas. |
The yen is at a 13-and-a-half-year high against the dollar, which has eroded Sony's foreign earnings. | The yen is at a 13-and-a-half-year high against the dollar, which has eroded Sony's foreign earnings. |
Other electronics firms are also suffering. | |
South Korea's LG Electronics, which makes handsets and home appliances, reported its first loss in almost two years earlier on Thursday. | |
It said it made a net loss of 671.3bn won ($490m; £350m) in the last three months of 2008. | |
But the gloom in the technology sector is not all-encompassing. | |
Apple said on Wednesday that made a record quarterly profit of $1.61bn (£1.15bn) in the final three months of last year, boosted by sales of iPhones and iPods. |
Previous version
1
Next version