Sony Dips Into the Red for FYQ1/2005 with Decreased TV and Semiconductor Sales

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Jul 29, 2005 16:23

Sony Corp. has released its consolidated financial results for the first quarter of FY2005. The company logged decreased earnings and has dipped into the red, with sales declining to ¥1559.4 billion from ¥1612.1 billion and with the operating loss expanding to ¥15.3 billion compared to ¥9.8 billion for the same period from the previous year. Key factors behind the drop includes losses from TV and semiconductor sales which reached ¥39.2 billion and ¥8.8 billion, respectively.

The electronics business segment posted sales of ¥1115.3 billion with an operating loss of ¥36.3 billion. The company expected to sell 8.50 million units of CRT TVs and 3.00 million units of LCD TVs, however the figures were revised downward to 7.00 million and 2.50 million, respectively. As for LCD TVs, the company could not adequately deal with the unexpectedly large number of orders for the lower priced "Happy WEGA" series, because its flagship, the "WEGA" series, was expected to be the best-selling product.

Sales in the game segment grew 64.0% year-on-year to ¥1.728 trillion, but the operating loss expanded to ¥5.9 billion from ¥3.0 billion for the same period from the previous year. According to Sony, the results reflected increase in advertisement and R&D expenses.

Atsushi Takano, Nikkei Monozukuri; Ikutarou Kojima, Nikkei Microdevices

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