Sony Warns of $2.9 bln Loss, Steps Up Restructuring Plan

226w ago - Following up the restructuring announcement from earlier this week, today Sony has warned that it could post a massive $2.9 billion annual operating loss due to decreasing demand and a stronger yen.

It also revealed fresh restructuring steps to revive its ailing electronics operations, to quote:

Sony Corp warned it would post a record $2.9 billion annual operating loss due to sliding demand and a stronger yen, and unveiled fresh restructuring steps to revive its ailing electronics operations.

The operating loss will be Sony's first in 14 years, underscoring deepening troubles for a company that has fallen behind Apple Inc's (AAPL.O) iPod in portable music, Nintendo Co (7974.OS) in videogames, and is losing money on flat TVs.

"While these are extremely challenging times, we must be fully prepared to embrace the opportunities that await us once these dark economic clouds begin to part," Sony Chief Executive Howard Stringer told a news conference on Thursday.

"We simply have no alternative but to dramatically change the fundamental ways we view our business as well as the way we create, manufacture and distribute our products," Stringer said.