Sony Still A Mess As Losses Pile Up
This week the company who commenced negotiations to sell their loss making PC division said overnight that they expect to report a loss of $1.23 Billion dollars for the full year ending in May 2014. The Company said that they hope to complete the sale of their PC division by July 1st 2014.
The loss which takes into account the launch of the new Sony PlayStation 4 with Company claiming that PS4 sales topped 4.2 million units since its Nov. 15 launch through to the end of December, putting it well on track to beat its 5 million target by March.
This is second downward revision in just three months, for Sony who has decided to split off their loss making TV business and operate it as a subsidiary.
For the full year, Sony now expects to log losses from the TV business totalling more than $240M.
What is not known is whether any additional jobs will be made at Sony Australia after the Company said that it could cut an additional 5,000 jobs-1,500 in Japan and 3,500 overseas-by March 2015.
Staffs working in the Companies PC Division are tipped to be among those that will be retrenched by the Japanese Company.
Sony Australia refuses to disclose information about the Companies local operations or how whether they have paid in full the $52M demanded by the Australian Tax office who after a 12 month investigation hit the local subsidiary with $21M in penalties and $32M in back taxes, shortly after the assessment was delivered the Chief Financial Officer of the Company quit along with the CEO Car Rose quit..
The ATO investigation covered tax returns for the years 2005,2006,2007,2008 and 2010,
Sony is believed to have already paid $26.8M back to the ATO while disputing the total amount.
Once a high flying Sony is today struggling from a lack of demand for their products with Apple, Samsung and LG stripping market share away.
Now the Company is losing billions of yen a quarter, forcing Sony to cut jobs and close plants. Under Chief Executive Kazuo Hirai Sony has sold off noncore assets while shifting the firm to focus on specific growth areas including mobile devices, videogames and digital cameras claims the Wall Street Journal.
Now analysts and share owners are calling for drastic action, including sales of unprofitable divisions and more cuts in costs through additional layoffs and plant closures.
New products launched by the Company include the Xperia smartphone to QX lens cameras that can be attached to smartphones.
But analysts say even cutting-edge gadgets may not contribute much too boosting revenue unless a blockbuster hit comes out. And while Sony’s ultrahigh-definition TVs are selling well, such higher-end products won’t immediately fill the void left by declining sales of mass-volume consumer products.