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Cuts feared as Sony operating loss looms
Bill Condie13 Jan 2009
Electronics and entertainment giant Sony is heading for a bumper operating loss of about $1.1 billion (£741.4 million), according to insiders.
Sony, run by Welshman Sir Howard Stringer, may post an operating loss of 100 billion yen in the business year instead of its previously estimated 200 billion yen profit, a sources inside the company told Bloomberg.
The result could shock analysts who, on average, see a profit of 18.5 billion yen.
An operating loss would be Sony's first in 14 years and could increase pressure for faster restructuring. Stringer plans to curb investment, exit businesses and cut 16,000 jobs.
Sony has been hammered by a strong yen that has hurt exports as well as the collapse of many of its most lucrative overseas markets. Some analysts believe Stringer will be forced to rethink strategy and streamline Sony's sprawling operations.
“Sony could reduce the number of products it offers,” JP Morgan analyst Yoshiharu Izumi said.
