Sony this morning revealed challenging financial results for its first quarter.
The company suffered a quarterly operating loss of 15.3 billion yen ($136.1 million), and was forced to cut its full-year forecast by 81 per cent to 30 billion yen. The period does include some restructuring charges.
Sales in the electronics segment fell 1.4 per cent. The company has been hit by falling prices across its consumer electronics markets: televisions, audio equipment, and digital camera image sensors.
"In the Electronics segment, an operating loss was recorded mainly due to a continued deterioration in the cost of sales ratio resulting from a decline in unit selling prices, as well as a decrease in sales to outside customers," the company said.
"In the Game segment, an increased operating loss was recorded as a result of both increased advertising and marketing expenses and research and development costs."
Looking at its music assets, the company revealed that the now merged Sony BMG: "Recorded sales revenue of $1,019 million, loss before income taxes of $23 million, and a net loss of $18 million during the quarter ended June 30, 2005. Loss before income taxes includes $93 million of restructuring charges."
In its financial announcement, Sony stresses that on June 22, 2005, a new senior executive team took over responsibility for managing the company.
The report confirms the company is reviewing its business strategy and structure. "The announcement of the resulting plan is expected to take place in September 2005," the company said.