Sony Expected to Report $1.1B USD Loss

From DailyTech: In 2008, many companies that traditionally had high profits saw things change as the global economy went soft. Moving into 2009, the global economy hasn't changed and electronics firms that are traditionally profitable are now announcing that they could see a loss.

Sony is reportedly ready to announce only its second loss in the history of the company being publically traded. The first loss by Sony was in 1995 and was due to a major write down in the value of its U.S. based motion picture studio. Many analysts are predicting that Sony may report a massive operating loss of about $1.1 billion due to sluggish sales and a strong yen.

Sony shares dropped 9 percent in trading on the news cutting $2 billion from the firm's market value of $22 billion. Sony isn't alone though with other Japanese electronics firms looking at losses. Toshiba saw stock prices drop over 8 percent after media in Japan reported it was headed for a major loss this year as well.

Sony previously announced that it would restructure and cut 16,000 jobs worldwide with 8,000 of that number being full-time employees. That number is roughly 4 percent of Sony's global workforce.

View: Article @ Source Site