Sony expects annual net loss as it continues to restructure

Sony said Wednesday that it expects a net loss of 50 billion yen this financial year, its sixth net loss in seven years, and plans additional restructuring measures that include its unprofitable personal computer operations.

Operating profit in the year through March 31 was forecast to rise more than five times to ¥140 billion, or $1.37 billion, compared to the year-ago level. The forecast fell short of the ¥227 billion average of 20 analysts polled by Reuters.

Sony made a ¥128.4 billion yen net loss for the financial year that ended March 31, in line with its own forecast of a ¥130 billion net loss. On May 1, Sony issued its third profit warning for the year and cut its outlook to barely one-tenth of its initial estimate.

The company’s chief executive, Kazuo Hirai, vowed when he took the helm two years ago to make electronics profitable, but the flagship division’s persistent losses have frustrated investors and invited unfavorable comparisons to rivals like Panasonic and Sharp, which have recovered from heavy losses in consumer electronics.

Sony said it would spend ¥135 billion on restructuring this financial year, compared with ¥177.4 billion the year before.