More Bad News For Sony

It’s like that company is living under a frikkin curse.

Sony profit plunges 72 percent on strong yen

TOKYO (AP) — Sony Corp.’s quarterly profit plunged 72 percent as a surging yen wiped out perks from flat-panel TV and PlayStation 3 sales, as well as box office revenue from the movie “Hancock.”

Sony said Wednesday it posted a net profit of 20.8 billion yen ($214 million) for the July-September period compared with 73.7 billion yen a year earlier. Sales in the fiscal second quarter slipped 0.5 percent to 2.072 trillion yen ($21.4 billion).

Sony makes about 80 percent of its sales overseas and is vulnerable to fluctuations in exchange rates. A rising yen erodes the overseas profits when converted into the Japanese currency.

“We already expect a poor performance for the Christmas shopping season,” Chief Financial Officer Nobuyuki Oneda told reporters. “On how things will fare after Christmas, I can only say we will continue to keep a careful look.”

Sony loses 7.5 billion yen ($77 million) in profit for each 1 yen gain against the euro, and 4 billion yen ($40 million) for each 1 yen gain against the dollar, he said.

Emphasis added by me.

I wonder now … since the Sony Reader division is now completely based here in America, will that grant it some immunity from the currency flip-flips? I hope so. It’d be great if, back in Japan, Sony sees some very surprising — and high — numbers from America and eBooks.

I’d like to see some bust-out numbers like this:

Sony reduced quarterly losses in the gaming business as sales in the sector improved 10 percent. Sony sold 2.43 million PlayStation 3 consoles during the quarter, up 85 percent from the same period a year earlier.

Emphasis added by me.

Gambatte, Sony!

Explore posts in the same categories: eBooks, Tech - Sony

2 Comments on “More Bad News For Sony”

  1. some guy Says:

    Hancock sucked. Samsung kicks Sony’s ass in everything but games (Nintendo does that.) Reader seems like pride goeth-ing.

  2. mikecane Says:

    Yes, Hancock sucked. I don’t agree with anything else. Sony’s OLED TV is breathtaking. And Sony was the *first* to do an eInk-based eBook device, so they are the pioneers in that area. They’ve done three generations of it, more than any other company.


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