Sony Boosts Full-Year Earnings Estimate by $430 Million

2012-39 REP Kaz Hirai H

in response to a query from THR, Sony chief executive Hirai says in a statement: "There is absolutely no truth to rumors that Sony's entertainment businesses are for sale."

The Japanese entertainment and electronics group saw improvement in all its business divisions, compared to its previous forecast, except components.

Sony Corp. revised its full-year earnings estimate, increasing it by $430 million (47 billion yen) on Friday, a week before the company is due to report its annual results.

Revenue at the entertainment and electronics group was unchanged at $8.1 billion, but its operating income estimate was raised 18.8 percent to $2.6 billion (285 billion yen), while net income nearly tripled to $668 million (73 billion yen).

Sony said results had improved, compared to its previous forecast, in all its divisions, including its film unit. The only division that didn't see an improvement was electronic components.

"The primary reasons for the upward revision in the segments that are anticipated to improve are expected decreases in amortization of deferred insurance acquisition costs and other costs in the financial services segment and lower costs than anticipated in February in the other segments, particularly semiconductors," said Sony.

The company has made a number of downward revisions in its earnings outlook in recent years as it has struggled to turn around divisions, including Sony Pictures and parts of its electronics business.

Sony plans to release its full financials next Friday.