Sony boosts outlook after first profit in Q5
Friday, 5 February 2010
TOKYO, Feb 4 (Reuters): Sony Corp's results offered tangible proof a restructuring at the electronics maker is starting to pay off as it halved its annual loss forecast on a rebound in flat-TV business and cost cuts.
Sony's first profit in five quarters was also driven in large part by its insurance division, whose investments were buoyed by a recovery in Japanese shares.
The company has shed jobs and shut plants following the global economic downturn and has worked to shore up its flat TV division, which has struggled amid stiff price competition with Samsung Electronics Co and other rivals.
"Earnings have bottomed out ... whether the recovery will continue in the next business year depends largely on its TV operations and videogames," said Kazuharu Miura, a senior analyst at Daiwa Securities Capital Markets.
Sony's first profit in five quarters was also driven in large part by its insurance division, whose investments were buoyed by a recovery in Japanese shares.
The company has shed jobs and shut plants following the global economic downturn and has worked to shore up its flat TV division, which has struggled amid stiff price competition with Samsung Electronics Co and other rivals.
"Earnings have bottomed out ... whether the recovery will continue in the next business year depends largely on its TV operations and videogames," said Kazuharu Miura, a senior analyst at Daiwa Securities Capital Markets.