Sony returns to profit, sees further growth in coming year

Sony reported results for its fiscal year to March 2013 in line with its recently revised forecast. Revenues rose 4.7 percent to JPY 6.801 trillion, and the operating result moved to a profit of JPY 230 billion from a loss of JPY 67.3 billion the previous year. The net profit totaled JPY 43 billion or JPY 40.19 per share, versus a loss of JPY 456.7 billion or JPY 455.03 per share a year ago. Sony benefited from the takeover of the Sony Ericsson mobile phone joint venture, restructuring at its TV business and the divestment of its small display and chemicals businesses and office buildings. 

The mobile business, which includes handsets and PCs, doubled sales to JPY 1.258 trillion thanks to the takeover. On a pro forma basis, sales were up 18 percent, as higher prices and volumes for smartphones helped offset lower computer sales. Sony sold 33.0 million smartphones during the fiscal year, up from 22.5 million the previous year. Sales in the most recent quarter totaled 8.1 million, down from 8.7 million in the three months to December. The division still posted an operating loss of JPY 97.2 billion, versus a profit of JPY 7.2 billion a year earlier when it booked a one-time gain on the mobile takeover. The weak PC market and forex effects weighed on results, as did an increase in restructuring charges. 

Across the company's other divisions, results were down in cameras and gaming, but profits improved in semiconductors, consumer electronics, films and music. For the year to March 2014, Sony forecast an increase in revenues to JPY 7.50 trillion and stable operating profit, thanks to the weaker yen and improved electronics sales, including a "significant" increase in smartphones sales to around 42 million units. Net profit is expected to rise to around JPY 50 billion.