1. Sony cuts profit view on battery business sale

Sony cuts profit view on battery business sale

Sony cut its annual profit forecast by a quarter today, citing the sale of its battery business, as the electronics giant sheds businesses to bolster its bottom line.

By: | Tokyo | Published: October 31, 2016 4:38 PM
In July, Sony cut its full-year sales forecast - trimming it to the current level - as it blamed a surging yen and slower smartphone sales. (Reuters) In July, Sony cut its full-year sales forecast – trimming it to the current level – as it blamed a surging yen and slower smartphone sales. (Reuters)

Sony cut its annual profit forecast by a quarter today, citing the sale of its battery business, as the electronics giant sheds businesses to bolster its bottom line.

The company now expects a net profit of 60 billion yen ($ 572 million) in the fiscal year through March, down from an earlier 80 billion yen forecast, with revenue still expected to come in at 7.4 trillion yen. The firm reports its earnings on Tuesday.

It cited impairment charges and other costs linked to the 17.5 billion yen sale of its battery division to Apple supplier Murata Manufacturing.

In July, Sony cut its full-year sales forecast – trimming it to the current level – as it blamed a surging yen and slower smartphone sales.

Sony previously warned that a pair of deadly quakes in Japan in April would also dent its financial results.

The quakes, which caused major damage in southern Kyushu and claimed dozens of lives, forced Sony to temporarily shutter factories, hitting production and sales.

But it is expected that the company will stay in the black as strong sales of its PlayStation 4 offset the negative impact of the disaster.

The once-iconic firm has been working to claw back to profitability under a painful restructuring that has included layoffs and asset sales.

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