Sony reported an annual profit for the first time since 2008 due to cost slashing and some good luck (the depreciation of the yen). But its future still rests on a much needed turnaround in its electronics business.
Sony announced Wednesday a profit of $435 million this year, and a 4.7 percent sales gain over last year, with much of the profits coming from Sony’s financial services unit and cost cutting measures like selling off its NYC headquarters for $1.1 billion as well as selling a TV manufacturing plant. Electronics overall, still lost money this past fiscal year, ended in March.
But this year might see a turn around in electronics. According to The New York Times, Sony’s Chief Financial Officer said, “This year, we absolutely intend to make a profit in electronics.”
Sony claims it will raise net profits another 16 percent this fiscal year ending March 2014, due in part to the release of the PlayStation 4 this holiday season. Also much rests on the success of Sony’s new smartphones (the first under its own brand after the breakup of Sony Ericsson).
Sony hopes to break even in TVs this year, after losing money in TVs for 8 straight years including this year. In smartphones, Sony’s new Xperia Z has received positive reviews and Sony said sales in that segment grew by 18 percent, said the Times.
Source: The New York Times