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Sony losses due to natural disasters

August 01, 2011 By: Dr Search Principal Consultant at the Search Clinic Category: Ecommerce, internet, Technology Companies, Uncategorized

Electronics maker Sony reported a loss in the April-to-June period after the earthquake and tsunami hit production at its Japanese factories.
Sony losses due to natural disastersThe company reported a net loss £122 million for the quarter. That was down from a £210 million net profit during the same period last year.

Sony also cut its forecast for its full-year earnings by 25% to 60bn yen, from an original projection of a profit of 80bn yen.

The company said sales and profit “were mainly affected by the negative impact of the Great East Japan Earthquake as well as the deterioration of the electronics business environment, and unfavourable exchange rates”.

Sony was not the only electronics company to see its results for the quarter hit by the natural disasters. Also on Thursday, Panasonic reported a net loss of 30.4bn yen, compared with a 43.7bn-yen profit for the same period a year earlier. Sharp also recorded a quarterly loss of 49.3bn yen, down from a profit of 10.7bn yen last year.

The company said various factors had contributed to the drop, not least the falling prices of Liquid Crystal Display (LCD) TVs.

Sony also warned that as economic woes in its key markets continued, it expected TV sales to fall even further.

Sony also said that the cyber attacks that some of its networks were subjected to earlier this year – which led to network services being temporarily shut down – had led to higher costs to cover items such as better security measures.

These costs will be recorded in the July-to-September quarter, the company said.

Sony discovered in April that hackers had gained access to its PlayStation Network, which was then shut down worldwide for more than a month while the company reviewed its security procedures.

Its network services for Qriocity and Sony Online Entertainment were also attacked.

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