Sony’s Annual Net Losses Double Prediction

Maybe brand new Sony CEO Kazuo Hirai is rethinking his decision to take the reins of legendary Japanese electronics maker; a day after announcing its new CEO, Sony delivered its financials for the quarter October-December 2011, and the results were less than stellar.

The company lost $2.1 billion in the quarter and predicts losses $2.9 billion for the year through March, according to a Reuters report; there was no Christmas miracle for Sony’s sales. Worse, the loss caps off a fourth straight year of red ink for Sony. Certainly, there are causes that are mostly outside of the company’s control--natural disasters that wrecked supply chains, and economic concerns--but there was also a penalty for a business move with Samsung and a general lack of competitive products in the market.

Photo credit: Reuters

New CEO Hirai is one of Sony’s own, hand-picked from the company’s gaming division and groomed to replace departing CEO Howard Stringer. He made it clear at his introductory press conference that he’s well aware of the challenges and tough decisions ahead of him.

When a company is floundering, it’s difficult to say whether an insider with intimate knowledge of the company can see all the problems and get things back on track or if it’s wiser to bring in an outsider with a fresh perspective and fewer attachments. Sony is betting the farm on the former.

Tags:  Sony, CEO, financial, Misc, Hirai
Via:  Reuters
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