madskillz
10-26-2007, 10:44 AM
TOKYO - A recovery in electronics sales offset losses in video games and helped boost Sony's profit for the July-to-September quarter more than 40-fold over the same period a year ago.
Sony Corp. saw $646.7 million in group net profit for the second quarter — or 73.72 yen, up from 1.68 billion yen in last year's second quarter. Quarterly sales jumped 12.3 percent to $18.27 billion.
For the fiscal half overall, Sony posted a $1.23 billion profit, about three times a year earlier. First half sales climbed 12.8 percent to $35.61 billion.
The major sore spot in Sony's results was in its game unit, where red ink worsened from a year earlier, partly because of losses related to its PlayStation 3 home console. The machine has been struggling against Nintendo's Wii.
Sony shares dipped 1.4 percent to $45 shortly before earnings were announced Thursday.
Sony, the entertainment and electronics company behind Walkman portable players and "Spider-Man" movies, has been restructuring in recent years to regain profitability in its core electronics operations, which includes televisions and digital cameras.
Those efforts appeared to be bearing fruit as sales in electronics jumped 20.7 percent and profit in the division surged about 13 times to nearly $939,000.
The Japanese electronics maker also reversed fortunes in its film unit, returning it to the black for the second quarter with the box office success, "Superbad," and cuts in marketing costs.
Sales in the gaming unit rose 42.9 percent, boosted by sales of the PlayStation 3, which hit stores last year. But losses in that division deepened to $848.2 million as Sony continued to sell the games for less than it cost to produce them. Sony hopes the unit will be profitable by the fiscal year ending March 2009, said Chief Financial Officer Nobuyuki Oneda.
The company sold 1.3 million PS3s during the second quarter for a total of 5.6 million so far worldwide.
In contrast, Nintendo said Thursday that it has sold 13.2 million units worldwide of the Wii, which launched about the same time as the PS3.
Sony raised its forecast for the full fiscal year, which ends March 31, to $2.89 billion from the earlier projection of $2.81 billion.
Its computer chip business has seen healthy demand; the chips are used in personal computers, digital cameras and the PS3.
Sony has been banking on a resurgence in its TV business, where it fell behind rivals in flat-panel TVs. It now makes them jointly with Samsung Electronics Co. of South Korea. But it booked a slight loss from its liquid-crystal display venture with Samsung and acknowledged its TV operations were in the red for the fiscal first half.
The company recently showed a superthin TV — just 0.12 inches thick — whose display uses a different technology called organic light-emitting diode that President Ryoji Chubachi said symbolizes Sony's big comeback.
The $1,750 XEL-1, which has an 11-inch screen, goes on sale Dec. 1 in Japan. Plans for overseas sales are undecided. Production is set for 2,000 units a month.
Both profit and sales were down in Sony's financial unit, which includes an online bank and insurers. But profit from equity Sony holds in affiliates, including cell maker Sony Ericsson Mobile Communications AB, edged up slightly from a year ago, and losses declined at Sony BMG Music Entertainment, which Sony runs with Bertelsmann AG.
Best-selling albums during the quarter included Bruce Springsteen's "Magic" and Foo Fighters' "Echoes, Silence, Patience & Grace."
Source (http://news.yahoo.com/s/ap/20071025/ap_on_hi_te/earns_japan_sony;_ylt=Au2WzJNjJKDWNgbXh.v5c34K77EF)
Sony Corp. saw $646.7 million in group net profit for the second quarter — or 73.72 yen, up from 1.68 billion yen in last year's second quarter. Quarterly sales jumped 12.3 percent to $18.27 billion.
For the fiscal half overall, Sony posted a $1.23 billion profit, about three times a year earlier. First half sales climbed 12.8 percent to $35.61 billion.
The major sore spot in Sony's results was in its game unit, where red ink worsened from a year earlier, partly because of losses related to its PlayStation 3 home console. The machine has been struggling against Nintendo's Wii.
Sony shares dipped 1.4 percent to $45 shortly before earnings were announced Thursday.
Sony, the entertainment and electronics company behind Walkman portable players and "Spider-Man" movies, has been restructuring in recent years to regain profitability in its core electronics operations, which includes televisions and digital cameras.
Those efforts appeared to be bearing fruit as sales in electronics jumped 20.7 percent and profit in the division surged about 13 times to nearly $939,000.
The Japanese electronics maker also reversed fortunes in its film unit, returning it to the black for the second quarter with the box office success, "Superbad," and cuts in marketing costs.
Sales in the gaming unit rose 42.9 percent, boosted by sales of the PlayStation 3, which hit stores last year. But losses in that division deepened to $848.2 million as Sony continued to sell the games for less than it cost to produce them. Sony hopes the unit will be profitable by the fiscal year ending March 2009, said Chief Financial Officer Nobuyuki Oneda.
The company sold 1.3 million PS3s during the second quarter for a total of 5.6 million so far worldwide.
In contrast, Nintendo said Thursday that it has sold 13.2 million units worldwide of the Wii, which launched about the same time as the PS3.
Sony raised its forecast for the full fiscal year, which ends March 31, to $2.89 billion from the earlier projection of $2.81 billion.
Its computer chip business has seen healthy demand; the chips are used in personal computers, digital cameras and the PS3.
Sony has been banking on a resurgence in its TV business, where it fell behind rivals in flat-panel TVs. It now makes them jointly with Samsung Electronics Co. of South Korea. But it booked a slight loss from its liquid-crystal display venture with Samsung and acknowledged its TV operations were in the red for the fiscal first half.
The company recently showed a superthin TV — just 0.12 inches thick — whose display uses a different technology called organic light-emitting diode that President Ryoji Chubachi said symbolizes Sony's big comeback.
The $1,750 XEL-1, which has an 11-inch screen, goes on sale Dec. 1 in Japan. Plans for overseas sales are undecided. Production is set for 2,000 units a month.
Both profit and sales were down in Sony's financial unit, which includes an online bank and insurers. But profit from equity Sony holds in affiliates, including cell maker Sony Ericsson Mobile Communications AB, edged up slightly from a year ago, and losses declined at Sony BMG Music Entertainment, which Sony runs with Bertelsmann AG.
Best-selling albums during the quarter included Bruce Springsteen's "Magic" and Foo Fighters' "Echoes, Silence, Patience & Grace."
Source (http://news.yahoo.com/s/ap/20071025/ap_on_hi_te/earns_japan_sony;_ylt=Au2WzJNjJKDWNgbXh.v5c34K77EF)