Sony Full-Year Forecast Down Following Japanese Earthquakes
The entertainment to electronics group said its profits for the year to March 2017 will be down 46 percent to $732 million, in a forecast delayed following damage to factories in the Kumamoto area of Japan last month.
Sony Corp. forecast profits of $732 million (￥80 billion) for the financial year to March 2017 on Tuesday in Tokyo, the announcement delayed by the earthquakes in Kumamoto, Japan, last month, which damaged two of its factories.
Sales are predicted to drop 3.8 percent due to weaker performances in the music, mobile phones and image sensor divisions. Operating income is predicted to rise 2.2 percent due to cost-cutting measures and stronger performances in other sectors.
The group's forecast profit is down 46 percent from the last fiscal year, partly due to the effect of the earthquakes. The factories in Kumamoto make sensors for digital cameras, security cameras and micro-display devices.
The series of earthquakes on the southern island of Kyushu, including the magnitude 7 tremor on April 16, killed 49, injured around 3,000 and left tens of thousands living in evacuation facilities.
There is no impact predicted for the pictures division, which is forecast to generate profits of $394 million (￥43 billion), up more than 10 percent, on sales of $9.25 billion, up 7.7 percent.
Sony announced its full-year results last month but was unable to make a forecast due to the earthquakes occurring just prior to its earnings release.
Sony stock closed down slightly in Tokyo before the announcement, while the main Nikkei 225 index fell 1 percent.