That $1 billion operating loss that everyone was shocked to learn Sony would post this year? It’s actually $3 billion:
NYT: Sony, the Japanese electronics company, said Thursday that it would post a record annual operating loss of nearly $3 billion because of the rapid deterioration of the global economy and it announced a major restructuring that will include layoffs and factory closings.
The company said business had been worsening across every major line, including electronics, games, movies and financial services. The global economic crisis has reduced demand for Sony’s products, which range from televisions and cameras to movies and PlayStation 3 game consoles, even as the rise of the yen against other currencies reduces the value of its overseas sales when the revenue is converted into yen.
The announcement Thursday marked the second downward revision Sony has made to its current-year forecast, after a similar move in October.
Sony, long one of Japan’s most visible companies, projects an operating loss of 260 billion yen, or about $2.9 billion, for the current business year, compared with a profit of 475.3 billion yen a year earlier. The new estimate represents a deterioration of 60 billion yen from the company’s October forecast.
We don’t mean to be rude, but the economy isn’t Sony’s only problem. Is Sony’s first non-Japanese CEO, Sir Howard, going to eventually be held accountable for that?
See Also: Who’s Running Sony, Anyway?
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