Pioneer, Sony Expect to Swing to Profit; Narrow Losses in Fiscal Q4

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Pioneer Corp.’s restructuring may be paying off as the company said it expects to post its first net profit in seven years for the fiscal year ending March 2011. Pioneer, after pulling out of the plasma TV business last year, has been raising funds to bolster its car electronics business. (It issued to new shares to companies including Honda Motor Co.).
It’s recent fourth quarter ending March 2010 produced a much narrower net loss of 13.5 billion yen compared to 56.6 billion yen a year ago, reports the Dow Jones Newswire. Sales during the quarter were up 16 percent to 116.2 billion yen versus 100.6 billion yen a year ago. For the full year Pioneer expects a net profit of 11 billion yen on a 9 percent sales increase to 480 billion yen.
Sony said its sales began to improve in the second half of last year, which helped cut its net loss by half for the fiscal Q4 ending March 2010 to about 40.8 billion yen. Through sales of 3D TV and a new online service, the company hopes to turn a profit of 50 billion yen this year on sales of 7.6 trillion yen, according to The New York Times.
While over the past several years, Sony has lost share to competitors such as Apple, Nintendo, Samsung and even Amazon (who makes the Kindle e-reader), the electronics giant is getting aggressive this year in 3D TVs. It expects to sell 25 million TVs in the fiscal year and to turn a slight profit in TVs, compared to a loss of 73 billion yen last fiscal year. Its PS3 consoles also started to turn a profit in March and the company expects to sell 15 million PS3s during the fiscal year ending next March.
Sony announced in November that it will launch what is tentatively called the Sony Online Service offering apps and Sony content from movies, games, etc.
While Sony’s net losses narrowed in fiscal Q4, its sales fell 7 percent to 7.2 trillion yen.
Sources: Dow Jones via Fox Business, The New York Times, Businessweek

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