- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
Sony Corp. predicted a $2.15 billion (?230 billion) full-year loss Wednesday, which is a wider loss than previously forecast, due to a writedown on the value of its mobile communications business.
Sony also announced that it would cancel its interim and full-year dividends for the current fiscal year, which ends in March. This marks the first time since the company went public in 1958 that it will not make a dividend payment to shareholders.
The stock dropped more than 6 percent in early Wednesday trading in the U.S.
Increasingly tough competition in the mobile phone market has seen Sony continuing to miss sales and profit targets. The estimated value of the entire mobile operation has been revised downward in Wednesday’s announcement.
About 1,000 staff, or seven percent of the workforce, will be cut from the mobile communications operations. In July, the entertainment and electronics conglomerate had forecast a $500 million loss for the year to March 2014.
Sony had been predicting operating income of $1.31 billion (?140 billion) but has revised that to a deficit of $373 million (?40 billion).
“I’d like to express my deep regret to shareholders, and as president, I take this very seriously,” said Sony president and CEO Kaz Hirai at a hastily-arranged press conference at Sony’s headquarters in Tokyo.
Sept 17, 01.45 a.m. Updated with information from the press conference.
Sign up for THR news straight to your inbox every day
More from The Hollywood Reporter
Marlon Wayans and Family Pay Tribute to Patriarch Howell Wayans: “I Feel Y’all Lifting Me Already”
Congressman Adam Schiff on Trump’s GOP Grip, Looming WGA Strike and His All-Time Favorite Show
Singer Kane Brown on His First Acting Gig on ‘Fire Country’: “The Perfect Start of My Acting Career” (Exclusive Video)
GLAAD Media Awards: Stars Denounce Attacks on LGBTQ+ Community as Bad Bunny, Christina Aguilera Accept Honors