Sony profits drop 98%

[Asher]

http://www.theinquirer.net/?article=10653

Sony suffers 98% profit drop

Sales slump and restructuring hits


By Cher Price: Thursday 24 July 2003, 09:36

GIANT FIRM Sony said in Japan that its net profit droped for its financial first quarter by not far short of 100% because of restructuring and tougher conditions in the marketplace.
The firm reported that turnover fell only 6.9% to ¥1.604 trillion compared to the ¥1.722 trillion during the same period last year.

But its net profits slumped from ¥57.18 billion in its Q1 last year to ¥1.12 billion.

Many of Sony's divisions were hit by declines. Its Playstation and electronics group both saw falling shares, as Sony absorbed the effect of a staggering ¥140 billion restructuring charge.

It also faced stiff competition in most areas from its competitors, leading to price falls.

In a company statement, it reckoned that results would be better in its current quarter.

It has begun.

Sony isn't the heavyweight it seems. They just barely made a profit...

[Japher]

"reckoned"

[Az]

YAY WOHOOOOO MICROSOFT FOR EVER! !!!!!!!!!!

[red_jon]

Isn't 'enquire' spelt with an 'e'?


I love doing an English degree I do

[Asher]

Originally posted by Azazel
YAY WOHOOOOO MICROSOFT FOR EVER! !!!!!!!!!!

/me dons his "I Told You So, SUCK IT DOWN" t-shirt and flexes.

[Asher]

Originally posted by red_jon
Isn't 'enquire' spelt with an 'e'?

I love doing an English degree I do

Both are correct.

[Az]

since turnover fell only 7 percent, I tend to believe them, that those are indeed restructuring costs.

[Japher]

Naw, it's all that pirating of music!!!!!!!!!

[Asher]

Originally posted by Azazel
since turnover fell only 7 percent, I tend to believe them, that those are indeed restructuring costs.

Also note that it mentions the share of the Playstation unit fell...

They also blamed it on "stiff competition".

[Cruddy]

Re: Sony profits drop 98%

Originally posted by Asher

It has begun.

Sony isn't the heavyweight it seems. They just barely made a profit...

Sorry if I've got the wrong end of the stick here - but the Japanese recession began quite a while ago.

How does Sony's performance compare with Matsush1ta? Best to compare like with like, surely.

I suspect it will be better... this isn't good news for Sony, don't get me wrong... but I can't help thinking they can restructure through acquisition if their competitors are in even shakier positions.

[DinoDoc]

Originally posted by Asher
Also note that it mentions the share of the Playstation unit fell...

They also blamed it on "stiff competition".

How's Nintendo doing?

[Asher]

The vast majority of Sony's profits come from the SCE division, whose main products are things like Everquest and the PlayStation lineup.

Now they admit for the first time PlayStation sales are facing stiff competition and have actually fallen off...

This is big news to a company whose survival for the past few years relied on PlayStation profits.

[mrmitchell]

Sony's not going down. It's just restructuring plus a continuing recession in Japan and America, probably.

(Or it could be that pirating, you're onto something there j/k)

[Asher]

Originally posted by DinoDoc
How's Nintendo doing?

The last time I checked, their profits were dropping off somewhat, but still healthy. I think they actually made more than Sony.

As for consoles specifically, MS and Nintendo are tied in worldwide sales of hardware, with MS on top in North America, Europe, and Australia, while Nintendo is on top in Japan.

[DinoDoc]

Originally posted by Asher
The last time I checked, their profits were dropping off somewhat, but still healthy. I think they actually made more than Sony.

That couldn't have been too hard based on the article you gave.