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| Version 3 | Version 4 |
|---|---|
| Sony makes first loss in 14 years | Sony makes first loss in 14 years |
| (about 6 hours later) | |
| Electronics giant Sony has reported its first annual loss in 14 years, after being hit by a big drop in sales. | Electronics giant Sony has reported its first annual loss in 14 years, after being hit by a big drop in sales. |
| Sony reported a loss of 98.9bn yen ($1.04bn; £685m) for the year to the end of March, compared with a profit of 369.4bn yen the previous year. | Sony reported a loss of 98.9bn yen ($1.04bn; £685m) for the year to the end of March, compared with a profit of 369.4bn yen the previous year. |
| The company blamed the global downturn and the strong yen for the loss. Worldwide sales were down 12.9%. | The company blamed the global downturn and the strong yen for the loss. Worldwide sales were down 12.9%. |
| It had previously announced it would be cutting 8,000 of its 185,000 workforce and closing 10% of its factories. | It had previously announced it would be cutting 8,000 of its 185,000 workforce and closing 10% of its factories. |
| However, the loss was not as bad as Sony had expected. It had forecast a loss of 150bn yen back in January. | However, the loss was not as bad as Sony had expected. It had forecast a loss of 150bn yen back in January. |
| Sony's shares closed down 6.8% at 2,400 yen ahead of the results. | Sony's shares closed down 6.8% at 2,400 yen ahead of the results. |
| Right now they have no 'Number One' products Fujio Ando, Chibagin Asset Management | Right now they have no 'Number One' products Fujio Ando, Chibagin Asset Management |
| Several Japanese companies have said they have been hurt by the strong yen, which make exports more expensive. | Several Japanese companies have said they have been hurt by the strong yen, which make exports more expensive. |
| On Tuesday, Hitachi announced an annual loss of 787.3bn yen - a record for a Japanese manufacturer. | On Tuesday, Hitachi announced an annual loss of 787.3bn yen - a record for a Japanese manufacturer. |
| 'Gradual recovery' | 'Gradual recovery' |
| Sony, which makes PlayStation games consoles and Vaio PCs, forecast a net loss for the current financial year of 120bn yen. | Sony, which makes PlayStation games consoles and Vaio PCs, forecast a net loss for the current financial year of 120bn yen. |
| And it said it would carry on with its restructuring programme of closing plants and cutting jobs. | And it said it would carry on with its restructuring programme of closing plants and cutting jobs. |
| Analysts greeted Sony's results with cautious optimism. | Analysts greeted Sony's results with cautious optimism. |
| "Their outlook gave me the impression that their business is heading for a gradual recovery," said Fujio Ando, senior managing director at Chibagin Asset Management. | "Their outlook gave me the impression that their business is heading for a gradual recovery," said Fujio Ando, senior managing director at Chibagin Asset Management. |
| "But it would all depend on whether they would be able to start producing popular products, because right now they have no 'Number One' products." | "But it would all depend on whether they would be able to start producing popular products, because right now they have no 'Number One' products." |
| Nintendo rivalry | Nintendo rivalry |
| Sales of the PS3 console rose from nine million units to 10 million | Sales of the PS3 console rose from nine million units to 10 million |
| Sony has had to battle with the popularity of rival Nintendo's Wii console. | Sony has had to battle with the popularity of rival Nintendo's Wii console. |
| Sales in Sony's gaming division were down 18%, largely thanks to the falling popularity of its older PlayStation 2. | Sales in Sony's gaming division were down 18%, largely thanks to the falling popularity of its older PlayStation 2. |
| Sales of the PS2 console fell from 13.66m units the previous year to 7.91m, while sales of software for the PS2 decreased from 154m units to 83.5m. | Sales of the PS2 console fell from 13.66m units the previous year to 7.91m, while sales of software for the PS2 decreased from 154m units to 83.5m. |
| The decline in PS2 sales outweighed a rise in sales of the newer and more powerful PS3. | The decline in PS2 sales outweighed a rise in sales of the newer and more powerful PS3. |
| In March, the PS3 outsold the Nintendo Wii in Japan for the first time in 16 months. However experts saw this as a temporary blip rather than a sign of the Wii's decline. | In March, the PS3 outsold the Nintendo Wii in Japan for the first time in 16 months. However experts saw this as a temporary blip rather than a sign of the Wii's decline. |
| Earlier this month Nintendo said it made an annual profit of 279.1bn yen. | Earlier this month Nintendo said it made an annual profit of 279.1bn yen. |
| Management shake-up | Management shake-up |
| Sony's president Ryoji Chubachi stepped down in April as part of a managerial reshuffle at the group. | Sony's president Ryoji Chubachi stepped down in April as part of a managerial reshuffle at the group. |
| Mr Chubachi had overseen Sony's electronics sector which is at the heart of the firm's woes. | Mr Chubachi had overseen Sony's electronics sector which is at the heart of the firm's woes. |
| Chairman and chief executive Howard Stringer took on the role of president. | Chairman and chief executive Howard Stringer took on the role of president. |
| Since then, Sony's shares have gained 43%. | Since then, Sony's shares have gained 43%. |
| Nobuo Kurahashi, an analyst at Mizuho Investors Securities called the move "a positive sign of how Sony is frantically moving forward toward change". | Nobuo Kurahashi, an analyst at Mizuho Investors Securities called the move "a positive sign of how Sony is frantically moving forward toward change". |
| Mr Stringer, who was born in Wales but is a US citizen, is the first non-Japanese boss of Sony. | Mr Stringer, who was born in Wales but is a US citizen, is the first non-Japanese boss of Sony. |
| He has also promoted three relatively young executives to his managerial team under the reorganisation. | He has also promoted three relatively young executives to his managerial team under the reorganisation. |