Sony today praised its mobile business, despite reporting a net loss of almost £230m for its first quarter.
The company released its figures for the three months to 30 June 2012, thanking its mobile division for the 1.4% rise in sales. However, operating income fell dramatically by over 77% and the company slashed its profit forecast from just under £250m to £165m for the year.
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Sony claimed the company’s financial struggles were down to the poor state of the global economy, as well as the change in the exchange rate for Japanese Yen.
The story was more positive within the mobile products and communications segment of Sony. It reported a 133% increase in sales to £2.3bn, but this was due to the consolidation of Sony Mobile into the company – ending its 11-year partnership with Ericsson by buying the Swedish company’s share in the business.
However, while this business move increased sales, it also cut operating income dramatically, with the division recording a loss of over £230m, equivalent to a drop of 28%.
“Sony is working to improve profitability [of the mobile division] and harness the full power of the Sony Group by further enhancing cooperation within the electronics businesses, improving the efficiency of engineering by enhancing collaboration between engineers, strengthening product competitiveness, restructuring operations, and, in the area of sales, increasing cooperation with Sony Group companies in each region,” read a statement from the company.
The company has put in a number of restructuring measures, including the loss of more than 10,000 staff, in an attempt to come back to profitability.
“Sony is working to improve efficiencies and establish an organisational structure that enables such improvement, primarily in the electronics businesses,” the report concluded.
“Sony is moving toward a leaner and more dynamic structure for its business units, headquarters, administrative divisions and sales companies, primarily those in developed countries.”