Sony expects $6.4 billion net loss
Tuesday, 10th April 2012 at 10:14 pm
'No sacred cows' in company restructure, says CFO Masaru Kato
Sony has announced it anticipates a ¥520 billion ($6.4 billion) loss for the year ended March 31.
This is compared to its previously announced forecast of ¥220 billion ($2.7 billion).
This comes a day after a Japanese news outlet Nikkei reported that Sony might be about to cut as many as 10,000 jobs in an effort to cut costs.
The changes to the yearly estimate, detailed at a news conference, are due to the establishment of valuation allowances against differed tax assets ammounting to ¥300 billion.
The pre-tax estimate remains unchanged.
Stopping just short of confirming the job cuts, the New York Times reported Sony's chief financial officer Masaru Kato as saying that all options were under consideration.
“We will force through reforms, and there will be no sacred cows,” said Kato.
“The company management takes these numbers very seriously.”
Kato blamed Sony's fall on poor TV sales and a strong yen, which makes overseas competition particularly tough.
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