Sony posts first annual loss of $1 billion in 14 years

15 May 2009

Japanese electronics giant Sony Corp has posted its first $1-billion annual loss in 14 years as the global recession continues to take its toll in most of the industries in Japan.

Sony also warned that the company would go further in the red this financial year.

The near-to-non existent demand for electronics coupled with a strong yen against the dollar and the euro, will see Sony's net losses increase to ¥120 billion ($1.26 billion) in the next 12 months ending in March, warned the Japanese electronics and entertainment company.

The results were in sharp contrast to the ¥369.4 billion profit, Sony recorded a year earlier. Sales for the fiscal year through March dropped nearly 13 per cent to ¥7.73 trillion yen.

Sales dropped by 20 per cent in the US, 17 per cent in Europe while in Japan it dropped by 14 per cent.

More than three quarters of Sony's revenues come from outside Japan. The yen surged 24 and 30 per cent against the dollar and euro last year reducing the value of repatriated overseas earnings.