Sony reported revenues for its fiscal fourth quarter to March down 18 percent year-on-year to JPY 1.75 trillion, as the coronavirus outbreak disrupted sales of many of its products. Operating profit dropped 57 percent to JPY 35.4 billion, and net profit was down 86 percent to JPY 12.6 billion. The weak quarter means Sony missed its full-year guidance, and the company did not give an outlook for the new year.
Sony warned in March already that the coronavirus outbreak was likely to impact results and mean it missed its upgraded guidance issued in February. The pandemic provided a small boost to operating profit from games and the pictures division in Q4, thanks to more home entertainment use and lower marketing costs as movie releases were delayed. However, the shutdown of factories in China and Malaysia disrupted Sony's consumer electronics and smartphone businesses, including the supply of components to wholesale customers. The deteriorating marcoeconomic environment also led to significant writedowns and provisions at its financial services business.
As a result, annual revenues fell 5 percent to JPY 8.26 trillion, and operating profit also dropped 5 percent to JPY 846 billion. Net profit declined 36 percent over the fiscal year to JPY 582 billion. Sony still improved its free cash flow, to JPY 400 billion from JPY 233 billion the previous year, and said it will pay a final dividend of 25 yen per share.
Sony said it expects all of its divisions will report lower operating profit in the new fiscal year, but did not provide specific guidance. The company is assuming the impact of the coronavirus should be significantly diminished by the end of fiscal Q2 and business much back to normal from Q3.
