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Sony expected to post first operating loss in 14 years

Written by IT News on 11:43 PM

Sony Corp., one of the largest retailers of consumer electronics, is expected to release information about the operating loss of around 100 billion yen (1.1 billion dollars) for 2007/2008. In the statement, Sony will record the highest operating loss in 14 years, in accordance with business daily Nikkei. In addition to the reported losses was against a forecast of 200 billion yen profit.

Nikkei also reports that an estimated operating loss could actually double the previous amount, as it depends on the list of conditions for the January-March quarter. Alleged statement comes after the company announced in October forecast full-year operating profit of 200 billion yen for the year before the end of March 31, from 475.2 billion yen during the period 2006-2007. Moreover, again in December, has created a series of Bravia flat panel TV and PlayStation 3 game consoles were introduced that would have cut 16,000 jobs, reduce investment and remove some of the companies, in order to save around 1.1 billion dollars a year, in response to global recession.

The expected loss is a notification of the other major reported loss since going public in 1958 and the first to see the Sony electronics companies are suffering from sluggish global demand. Already in March 1995, Sony took a one-time charge associated with the company's U.S. film studio company, which was the main reason for operating losses.

News of a possible operating loss notification took shares down about 7.7 percent in early afternoon, as investors fear that the alleged statements can grow some more unpleasant surprises.

Sony is not the only company which saw its shares fall as Toshiba has also had a 4.2 per cent is in shares in Tokyo. Giant manufacturers expected to report its third quarter results in three months at the end of December on January 29.

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