Sony’s Annual Net Losses Double Prediction

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News Posted: Thu, Feb 2 2012 3:10 PM
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.
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JOliver replied on Thu, Feb 2 2012 6:30 PM

When Sony was selling only TVs with their Trinitron picture tube, it was the industry standard, the one everyone else had to follow.

To most people, there is little if any difference in the major brands of flat panel TV. As they’re losing money on every panel they sell, dropping the category makes perfect sense.

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rapid1 replied on Thu, Feb 2 2012 8:31 PM

I could have told you this a year ago. I did not know they were going to loose quite this much, but I did know they were going to loose a major amount. Sounds like they can just join in with most world governments etc. If everyone is loosing money where they he11 is it going? I mean I get a bad economy etc but there has to be a recipient somewhere realistically.

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I just don't understand how Sony has managed to stay in the electronics business this long. All I hear is them losing money all the time, its been like that for years.

@JOliver I totally agree with your first part, Sony was the ish back then, I owned a couple of those Wega TV's. 

JOliver:
To most people, there is little if any difference in the major brands of flat panel

Actually, I Have two Samsung and I would not buy any other brand. When it comes to movies, I don't stream or download from torrents, I have a healthy library of Blu Rays and I take the picture quality of a TV and my movies very serious, no cheap brands for me.

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JOliver:
When Sony was selling only TVs with their Trinitron picture tube, it was the industry standard, the one everyone else had to follow.

Back in the day, the Trinitron was awesome and Sony was golden! Sony's Trinitron of today, if they still manufactured it, might contain a rootkit that rats you out to your wife or girlfriend every time you watch a 'MANswers' episode. Also, after your purchase, Sony would notify you that your picture quality would become seriously degraded unless you agree to arbitration.

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LLeCompte replied on Thu, Feb 2 2012 10:18 PM

TVs are on the down turn. People dont buy them as much as they used too, and when they do they just get a cheap one. Sony can come back from this, they just need time. If they dont, oh well.

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If anyone can save Sony, it's the Kaz.

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AKwyn replied on Fri, Feb 3 2012 2:05 AM

JOliver:
When Sony was selling only TVs with their Trinitron picture tube, it was the industry standard, the one everyone else had to follow.

I have to agree, the FW900 was one of the best CRT's ever produced by mankind. Cool, vibrant, fast and dope.

Sony's new CEO has a tough challange against him if the losses are that big, surely he'll turn it around. I hope...

 

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As a kid, my parents only bought Sony products because they were the most dependable electronics brand on the market at the time. It really doesn't help Sony that the global economy has been crappy for the past several years. Still, many other tech companies have been able to weather the downturn with fewer losses than Sony. I believe they should bring in an outside firm to help look at ways to turn the company around.

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Sony losses the double? ohh that is nothing i thought they had no customers left lol

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cowboyspace:
i thought they had no customers left

Sony ranks #73 of the Fortune 500 companies worldwide, so maybe there is still one or two customers left. Smile

When I was a kid, there was a saying,..."No Baloney, It's A Sony!" It spoke of their quality and if you bought their brand, you were buying the most expensive that was available.

Their products ~were~ the very best in electronics, worldwide. They grew to be number one, everywhere.

Sony TV's, Walkman's, Stereos, you name it, they made the best and came up with the best ideas. BetaMax was a good technology, but they refused to license it to other companies. (big mistake)

Then they got to be too big for their britches. They thought that they were all that. In a tribute to stupidity, they made the decision to include Root-kit Viruses on their music CD's and they were caught doing it.  That was embarrassing and it cost them dearly in reputation. They never did stop thinking that they were all that,.....and hackers handed their asses to them on a platter last year. (several times)

This is why they're losses are so high. Maybe this new boss man can fix it. We'll see,........


Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

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Yea like you said they were. We are in the present now, i know sony was good before but that have changed now.

Yea they've been tru a lot of things ( you listed some above ) time to face its consequences . I hope kazuo help them out this time..

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Sony has always had good products - even to this day. The problem with Sony, IMO, is that *someone* in their organization (perhaps the lawyers) have adopted the attitude that the customer is the enemy. 

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realneil replied on Sat, Feb 4 2012 11:12 PM

Super Dave:
the customer is the enemy

Yeah, I can see that,.........it sucks too.

Don't part with your illusions. When they are gone you may still exist, but you have ceased to live.

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And then those childish people that call themselves 'Anonymous' went after Sony. Whatever. However, if anyone deserves to have their chops busted, it is Sony!

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AcceberA replied on Thu, Apr 12 2012 1:06 AM

          Its really sad to hear that. Eventhough Sony has been one of the most significant companies in consumer electronics, the company has been posting huge losses for the past 4 years running. The company is restructuring and will fire 10,000 employees. 10K workers to get pink slips in Sony layoffs. I hope they will overcome this problem concerning all the employees and their families.

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