Sony’s Profit Slides 23 Percent For Year

The Tokyo-based electronics and entertainment giant said Tuesday it expected earnings would rebound in the current year as cost-cutting efforts make an impact and new products drive sales.

In the January-March quarter, Sony’s net loss narrowed to 38.2 billion yen ($352 million) from 111 billion yen in the same period a year earlier. Sales rose 7.1 percent to 1.77 trillion yen ($16.3 billion) from 1.65 trillion yen.

Sony posted a group net profit of 88.5 billion yen ($815.16 million) for the year ended March 31, down from 115.5 billion yen a year earlier.

Sony’s once-trendsetting electronics division swung to an operating loss for the year, while its video-game and movie businesses each posted 40 percent declines in operating profit.

Group sales edged up 0.3 percent to 7.49 trillion yen ($69.03 billion) for the year from 7.47 trillion yen a year earlier.

Sony has been struggling to overhaul its business over three years by eliminating tens of thousands of jobs. It has faced intense rivalry from U.S., South Korean and other manufacturers that have shifted plants to countries where labor costs are low.

The company said a 168 billion yen ($1.55 billion) companywide overhaul hurt operating profit. Of the total, Sony spent about 143 billion yen ($1.32 billion) to accelerate layoffs at its ailing electronics operations, it said. The company spent 106 billion yen on restructuring the previous year, and expects to spend 130 billion yen ($1.20 billion) this year.

Nobuyuki Idei, chairman and chief executive, said Sony was counting on new products to boost earnings this year, including next-generation microprocessors, portable entertainment systems and online music sales.

The company’s core electronics segment recorded an operating loss of 35.3 billion yen ($325 million) last year after a 41.4 billion yen profit a year earlier. Sony said market price declines affected televisions, personal digital organizers, portable CD players and optical equipment, but that mobile phone, digital camera and flat-screen television sales gained.

Operating profit in the game division dropped 40 percent for the year to 67.6 billion yen ($623 million) from 113 billion yen on rising research and development costs and falling game console sales. Sales of the PlayStation 2 shrank, with a drop in shipments to the United States offsetting gains in Europe and Japan. Worldwide, Sony shipped 20.1 million PlayStation 2 consoles last year, down 10.7 percent from 22.52 million the previous year.

Operating profits at Sony’s movie business fell 40.3 percent for the year to 35.2 billion yen ($324 million) from 59.0 billion yen the previous year. The company attributed the plunge to a failure to deliver a blockbuster to match the previous year’s hit, “Spider Man.”

However, Sony Music Entertainment rebounded with an operating profit of 19.0 billion yen ($175 million) following a 7.9 billion yen loss, as advertising, overhead and restructuring costs were reduced.

For the fiscal year through March 2005, Sony forecast a group net profit of 100 billion yen ($920.9 million) and sales of 7.55 trillion yen ($69.63 billion).

Sony shares had fallen 1.28 percent to 4,610 yen ($42.50) at the close of trading Tuesday on the Tokyo Stock Exchange.

Source: Associated Press

Product Review

What do you do with 187 megapixels? The Lumix S1R is glorious overkill

The Lumix S1R is one of the most capable cameras ever made, from its robust build to extensive feature set. But its key feature, a 187MP high resolution mode, is something few customers will have use for.
Gaming

These are the must-have games that every Xbox One owner needs

More than four years into its life span, Microsoft's latest console is finally coming into its own. From Cuphead to Halo 5, the best Xbox One games offer something for players of every type.
Gaming

The Division 2 offers nothing but a funhouse mirror of America

Tom Clancy's The Division 2 improves on the design shortcomings of the original game in several different ways, but its version of Washington D.C. is completely removed from reality.
Movies & TV

Disney completes its $71.3 billion purchase of 21st Century Fox

Now that Walt Disney Company has closed its $71.3 billion purchase of 21st Century Fox's movie and television assets, what does this future hold for franchises like X-Men, the Fantastic Four, The Simpsons, and the rest?
Home Theater

TCL drops the price of its 75-inch 6-Series 4K Roku TV to $1,500

March is a great time for TV deals, and we've got a whopper: TCL has taken $300 off the price of its superb 75-inch 6-Series 4K HDR Roku TV, making it $1,500. That's the lowest price ever on this affordable TV.
Movies & TV

Apple’s next big event is minutes away: Here’s what you can expect

Apple's next big event takes place on March 25 in Cupertino, California. The company is expected to make several announcements related to its services, including Apple TV, so follow our guide to get ready for the big event.
Apple

Apple’s Netflix competitor Apple TV Plus headlines a barrage of new services

Apple's It's Show Time event in Cupertino, California, is officially over, with the tech giant announcing a new video-streaming service to compete with Netflix and Amazon, a new way to subscribe to paid news outlets, and more.
Apple

Apple March 2019 Event Coverage

Apple’s next event will take place March 25 at the Steve Jobs Theater in Cupertino, California at 10 a.m. PT. We’ve got a handy guide on how to watch, but don’t expect to see any new iPads, iMacs, or AirPods at the show, all of…
Computing

DisplayPort and HDMI both connect to screens, but here's how they're different

HDMI and DisplayPort are two of the most popular connectors for hooking up consoles, gaming PCs, TVs, and monitors, but which is best? To find out, we pitted HDMI vs. DisplayPort and compared their best and worst features.
Home Theater

Apple’s new TV app: All of your shows, on (almost) every device you own

Apple is updating its TV App into a truly cross-platform one-stop shop for all of your movies and TV shows. It will appear on smart TVs and devices from Roku and Amazon, but there are still questions about features and price.
Home Theater

All of the TVs and devices getting Apple’s AirPlay 2 and Apple TV in 2019

Apple is done keeping its AirPlay wireless streaming technology to itself. These are all of the TVs and devices that will get AirPlay 2, and the new TV App, in 2019. The list is growing, so check back regularly.
Home Theater

Powerbeats Pro: A first look at Apple’s new true wireless earphones?

Beats will reportedly release a true wireless pair of Powerbeats earphones next month. The second-generation AirPods received the new H1 chip, which is also expected to power the new Powerbeats, and an image has been revealed.
Home Theater

As Apple takes on Netflix, is YouTube ditching its original content strategy?

On the same day as Apple's video subscription service launch, Google is denying reports that YouTube is reportedly stepping away from its planned big-budget original content ambitions.
Home Theater

From the Roku Ultra to the Fire TV Cube, these are the best streaming devices

There are more options for media streamers than ever, so it’s more difficult to pick the best option. But that’s why we're here. Our curated list of the best streaming devices will get you online in no time.