Sony losses deepen on cheaper consumer electronics

Thursday, April 28, 2005 | 9:38 a.m.

TOKYO -- Losses at Sony deepened in the most recent quarter, as lower prices for televisions and other consumer electronics items undercut the company's efforts to turn a corner.

Sony, Japan's best-known brand, also warned Wednesday that profit for its financial year ending next March would decline by half as pricing pressures continue.

Sony's net loss widened to 56.5 billion yen ($533 million), or 59.40 yen a share, for the quarter ended March 31, compared with 38.16 billion yen, or 41.23 yen a share, in the year-earlier period.

By far the biggest drag on Sony's results was a big loss in its core electronics division. In addition, a decline in profits at Sony Pictures, the movie unit, and the company's cellular phone affiliate, Sony Ericsson, contributed to the deteriorating earnings. The introduction of Sony's latest hand-held game player, PlayStation Portable, however, helped the game segment turn from loss to profit.

Sony's quarterly loss highlights the challenges confronting Howard Stringer, the Welsh-born American tapped last month to lead an increasingly unwieldy entertainment and electronics conglomerate while it struggles to emerge from a long profit slump. Analysts and investors say Stringer will probably have to deepen a drastic revamping already under way, or face years more of poor earnings.