Wednesday, May 14, 2008

Sony Up On Net Profit, Down On Sales Volume

But overall, not a bad 4Q, really.

Sony posts profit but expects decline this year

For the fiscal fourth quarter, Sony posted a profit of 29 billion yen ($277 million), a reversal from a loss of 67.6 billion yen in the same period last year.
For the financial year through March, Sony earned a better-than-expected profit of 369.4 billion yen ($3.5 billion), a record for the company known for its Walkman portable players and "Spider-Man" movies.
That's nearly triple the 126 billion yen earned in the previous fiscal year. Quarterly sales dropped 6.5 percent to 1.95 trillion yen ($18.6 billion).

The biggest obstacle is the unfavorable currency swings that are expected in months ahead, the company said.
Sony is expecting the dollar to trade at about 100 yen for the current fiscal year. The dollar, which traded at an average of about 114 yen last year, fell below 100 yen earlier this year and is now trading around 105 yen.

To use a barely appropriate analogy, their gain in net profit owes more to having coughed up the last dregs of the financial hairball that the Playstation 3 launch had clogged their bowels with, and now their operating cash flow isn't stoppered up any more.

On the bright side, since analysts are tired of hearing Sony alternate between blaming everything on PS3 or Nintendo, they're going to point fingers at the yen for the next few earnings calls.

Sphere: Related Content

No comments: