31-year low in Japan; 19-year low in the US; Sweeping cuts to follow dismal FY
Sony Corporation’s share price has fallen its lowest position in a generation.
One day after the company reported a $6 billion loss for the financial year, Sony’s shares on the Tokyo Stock exchange hit a 31-year low, while its price on the New York Stock Exchange closed at the worst position since 1993.
A terrible trading day in Japan had Sony’s price fall by about 7 per cent to 1,135 Yen. In America it fell by 2 per cent to close at $15.37.
Currently, Apple’s share price is about forty times larger than Sony’s in the United States.
Sony, which was founded in 1946, projects it will make a profit in the current financial year. It blamed much of its dismal year on natural disasters and the strong Yen.
New CEO Kaz Hirai is preparing for a striking, globe-spanning company reorganisation that will result in the loss of about 10,000 jobs.
Develop understands that the PlayStation business will not be directly impacted by the job cuts.
Hirai has said Sony’s core strength is mobile, games and video/camera equipment.
The TV business, which has made losses eight years in a row, hangs in the balance.
[Image: Flickr (creative commons)]