Consumer Electronics giant Sony Corp cuts its annual profit outlook due to greater than expected financial losses related to the sale of its battery business to Murata Manufacturing Co.
Earlier today, Electronics giant Sony Corp has announced that it will cut its annual profit outlook due to the losses sustained by the sale of its battery business to Murata Manufacturing Co. The announcement disappointed a market that had been hoping for an upward revision on buoyant sales for Playstation 4 and the launch of its virtual reality headset.
Having emerged from years of restructuring. the consumer electronics giant began to refocus its business to the development of video-games, entertainment and camera sensors with the sale of its battery business being part of its plan of refocus.
However the losses the company has suffered from the flagged in July sale of its battery business to Murata Manufacturing Co, have turned out to be greater than expected. As a result of these higher-than-anticipated losses Sony now expects its operating profit for the current financial year to be no more than 270 billion yen ($2.6 billion), which is 30 billion yen less from its financial forecast in July and 8% less from what the company had earned the previous year.
The company will announce further details regarding its full-year outlook as well as the result of the first half of the current financial year on Tuesday.