“Consumer electronics giant Sony Corp. today slashed its earnings forecast for the 2008 fiscal year, saying profits will be down nearly 40 percent from a prediction the company made this summer and about 60 percent from the previous year,” Mike Musgrove reports for The Washington Post.
“In a statement released from its headquarters in Tokyo, Sony singled out sales of flat-panel televisions, digital cameras and video cameras as likely to be lower than previously expected ‘due to a deterioration in the market environment brought on by the slowing global economy.’ The company says it now expects earnings of 150 billion yen, or $1.5 billion, down from a July forecast of 240 billion yen, or $2.4 billion,” Musgrove reports.
“While Sony has often been regarded as a bellwether for the industry in the past, the company’s woes are sharper than those of some competitors. This week, for example, Apple Inc. reported brisk sales of Mac computers and iPhones. The company forecast sales in this upcoming quarter to be flat compared to its performance in the year-ago quarter,” Musgrove reports.
“Sony had been struggling long before the economy’s current troubles. Chief executive Howard Stringer took the helm in 2005 and launched a major reorganization in an attempt to restore the company’s luster as an electronics pioneer,” Musgrove reports.
Full article here.