Sony is expected to post an annual loss of $3.2 billion dollars for the company's fiscal year ended March 2011.
Sony today announced that it had revised its consolidated results forecast for the fiscal year ended March 31 and expects to record a loss of 260 billion yen or $3.2 billion dollars. This is a sharp contrast to the 70 billion yen profit that the company forecasted back in February.
Sony cited the Japanese earthquake as part of the reason for the big loss along with a non-cash charge of approximately 360 billion yen against certain deferred tax assets in Japan. The quake is said to have cost Sony 22 billion yen in sales this year and 17 billion yen in operating profits. The company also expects to incur various expenses relating to repair, removal, cleaning and other restoration jobs as a result of the disaster and values these at about 11 billion yen. However, Sony said today that it expects insurance policies to offset almost all of the losses and expenses related to restoration.
While the earthquake has had a significant impact (indeed, CNet reports that Sony’s 2012 fiscal year will be hit even harder as the company recovers), the company has yet to put a figure on the damages incurred as a result of the massive breach on its PSN and Qricoity network back in April. The company has supposedly already spent 14 billion yen on on customer support, legal expenses, network upgrades, and other expenses related to the outage and breach, but the total cost of the fiasco is not yet known.
Read the full story on CNet.
0 comments:
Post a Comment