Subscribe free to our newsletters via your
. Space Travel News .




POLITICAL ECONOMY
Sony highlights Japan electronics firms' woes
by Staff Writers
Tokyo (AFP) Aug 2, 2012


Sony on Thursday reported a widening quarterly loss and trimmed its profit forecast for the year, again underscoring the challenges faced by Japan's troubled electronics giants.

Hammered by giant losses, particularly in the television business, the sector has been struggling with a strong yen, falling prices, high labour costs and competition from foreign rivals such as South Korea's Samsung.

Weak demand in Europe, a key market for everything from Japanese televisions and mobile phones to vehicles and electronics parts, has also dented their results with the continent's turmoil threatening to get worse.

Sony rivals Sharp, Panasonic and Toshiba have also felt the pain amid a sagging global economy.

"The operating environment for Sony in the first quarter... continued to be severe due to factors including a slowing of the global economy and entrenchment of the appreciation of the yen exchange rate," it said Thursday.

For the fiscal first-quarter through June, the maker of PlayStation videogame consoles and Bravia televisions said its net loss widened to 24.6 billion yen ($313.5 million), dwarfing a 15.5 billion yen loss a year ago.

Sony, reeling from a 456.66 billion yen annual loss, its fourth in a row, also warned it would now eke out an annual net profit of 20 billion yen, down from an earlier projection of 30 billion yen for the year through March 2013.

The lowered forecast came "in anticipation of a severe operating environment from the second quarter onward resulting from uncertain foreign exchange rates and trends in the global economy", it said.

In April, Sony said it would cut about 10,000 jobs and spend nearly $1.0 billion on a massive corporate overhaul designed to shake up its product line-up and chop costs, which its new chief Kazuo Hirai described as "urgent".

The red ink at Sony came as Sharp said Thursday it will cut 5,000 jobs by March as it reported a quarterly loss of 138.4 billion yen, nearly three times bigger than a year ago.

Sharp said it would remain in the red for the rest of the year amid losses at its struggling TV business.

Toshiba, meanwhile, on Tuesday reported a quarterly net loss of 12.1 billion yen ($155 million) stemming from restructuring costs and the impact of a strong yen, reversing a net profit a year earlier.

Panasonic offered a glimmer of hope, saying this week it had swung back into the black for the first quarter, after a record 772.2 billion yen annual net loss, one of the worst-ever for a non-financial Japanese firm.

But the firm also pointed to a strong currency as a major drag on earnings, and said its improved balance sheet was largely due to chopping costs rather than a jump in demand. Its quarterly sales fell 6.0 percent from a year ago.

Japan's exporters have been hammered by the yen's value -- which hit record highs against the dollar late last year and remains strong -- because it makes products pricier overseas while shrinking the value of foreign-earned income.

Last year's quake-tsunami disaster and flooding in Thailand also hurt the nation's manufacturers.

Despite a long-standing rivalry, Panasonic and Sony have said they would team up on making televisions equipped with organic light-emitting diode (OLED) panels in a bid to fight off foreign rivals.

The technology lets producers make TVs that consume less power while offering a sharper picture than conventional flat panels, and is expected to be one of the dominant technologies in next-generation televisions.

However, the industry has struggled to find an economical way to develop larger screens equipped with the technology.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle








POLITICAL ECONOMY
China manufacturing shows 'modest improvement': HSBC
Beijing (AFP) Aug 1, 2012
China's manufacturing activity picked up modestly to a three-month high in July as factory output rose, boosted by government measures to stimulate the economy, HSBC said Wednesday. The British banking giant said its closely watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, posted a reading of 49.3 in July. That was better than the 48.2 recorded in ... read more


POLITICAL ECONOMY
Boeing Delivers 2nd Intelsat 702MP Satellite to Sea Launch Home Port

The Indian GSAT-10 satellite is prepared for Arianespace's fifth Ariane 5 flight of 2012

Arianespace: 50 successful Ariane 5 launches in a row!

Avanti announces successful launch of its HYLAS 2 Satellite

POLITICAL ECONOMY
The fractured features of Ladon basin

Curiosity's Search for Organics

India set to launch Mars mission in 2013

Curiosity's First Daredevil Stunt

POLITICAL ECONOMY
US flags still on the moon, except one: NASA

Another Small Step for Mankind

Russia starts building Moon spaceship, eyes Lunar base

Plans to revisit Moon impeded by financial difficulties

POLITICAL ECONOMY
Fly New Horizons through the Kuiper Belt

Hubble Discovers a Fifth Moon Orbiting Pluto

Hubble telescope spots fifth moon near Pluto

New Horizons Doing Science in Its Sleep

POLITICAL ECONOMY
RIT Leads Development of Next-generation Infrared Detectors

UCF Discovers Exoplanet Neighbor

Can Astronomers Detect Exoplanet Oceans

The Mysterious Case of the Disappearing Dust

POLITICAL ECONOMY
NASA cash boosts efforts for shuttle successor

NASA's Space Launch System Passes Major Agency Review, Moves to Preliminary Design

A Summer of Records for Engine Testing

NASA Tests Hypersonic Inflatable Heat Shield

POLITICAL ECONOMY
China's Long March-5 carrier rocket engine undergoes testing

China to land first moon probe next year

China launches Third satellite in its global data relay network

Looking Forward to Shenzhou 10

POLITICAL ECONOMY
Dawn Completes Intensive Phase Of Vesta Exploration

Planetary Resources Announces Agreement with Virgin Galactic for Payload Services

Explained: Near-miss asteroids

The B612 Foundation Announces The First Privately Funded Deep Space Mission




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement