Sony announced new plans to improve results at its consumer electronics business. The elements of the plan include strengthening the core businesses digital imaging, game and mobile, which should account for 75 percent of CE revenues by 2015. The mobile phone business will be integrated with Sony's tablets and Vaio laptops and focus on leveraging other assets from the group, such as digital imaging, game and entertainment content. Sony targets sales of JPY 1.8 trillion in the year to March 2015 from the mobile business and a "significant" improvement in profitability.
The group will also work on turning around the television business, with a reduction in the number of models, and expanding the CE business in emerging markets, where it targets sales of JPY 2.6 trillion in 2015, versus JPY 1.8 trillion last year. Sony will also work on creating new businesses and accelerating innovation, with expansion in medical and lfie sciences products, and realigning the business portfolio and optimizing resources. The measures are expect to lead to sales of JPY 6 trillion and an operating margin of 5 percent in its electronics business by the fiscal year to March 2015, and the Sony group should have sales of JPY 8.5 trillion yen, an operating margin of more than 5 percent and a return on equity of 10 percent by the same time.
To support the plans, the company will sell businesses with low margins or synergies, such as chemical products and small displays, and restructure its headquarters, subsidiaries and sales organization. These measures will lead to the loss of 10,000 employees this year and restructuring costs of JPY 75 billion.
