Sony reported revenues for its fiscal second quarter to September down 10.8 percent year-on-year to JPY 1.689 trillion, hurt by the continued drop in sales of its smartphones. Excluding currency effects, revenues were essentially flat, as the lower mobile sales were offset by growth in financial services and films.
Operating profit fell to JPY 45.7 billion from JPY 88.0 billion a year earlier, led by lower results from semiconductors and components, and net profit dropped to JPY 4.8 billion from JPY 33.6 billion. The results include the earlier announced impairment charge on the battery business up for sale and continued repair costs for the earthquake early this year.
The mobile communications division reported sales down 39.6 percent year-on-year (-34% on a constant currency basis) to JPY 168.8 billion. Sony blamed the drop mainly on lower unit sales of mid-range smartphones, as well as its withdrawal from some unprofitable regions in the past year. The lower volumes were offset in part by a better product mix, with a bigger concentration of high-value models. The operating result improved to a profit of JPY 3.7 billion compared to an operating loss of JPY 20.6 billion in the same quarter a year ago, thanks to the restructuring and cost reductions. The company also saw a JPY 5.4 billion positive impact from foreign exchange rate fluctuations.
Sony shipped 3.5 million smartphones in the quarter, down from 6.7 million a year ago but better than 3.1 million in the previous quarter. The company reduced its target for full-year shipments to 17 million from an outlook in July of 19 million. The revenue forecast was also lowered, to JPY 780 billion from JPY 840 billion, while Sony maintained the forecast for a small operating profit of JPY 5 billion at the division in the full year.
