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Thursday, May 23, 2013

Sony: Things are looking better than we thought



Although Sony has been in a bit of trouble over the last few years, things appear to be looking up.
The company on Thursday revised its initial forecast for the fiscal year ended March 31, sayingthat its sales will rise 3 percent compared to its initial forecast, landing at 6.8 trillion yen (about $69 billion). Better yet, Sony has bumped up its operating income and net income figures by 76.9 percent and 100 percent, respectively.
If Sony's final numbers for the fiscal year match its forecasts, the company will have dramatically improved its performance over the last year. In the fiscal year ended March 31, 2012, Sony posted a net loss of 456.7 billion yen. It's now planning to post a slight 40 billion yen profit.
So, what's changed? The company says that its sales of several assets has helped boost income on the year. The company's financial services division was also up during its last fiscal year. And thanks to a depreciating yen, the company's operating income on foreign sales was improved.
Sony has been in a bit of trouble over the last several years, leading to the company changing its management, as Sir Howard Stringer was replaced by Kazuo Hirai as its chief executive. During his tenure, Hirai has focused Sony around several key divisions, including mobile and gaming, and has sold off unnecessary assets, like buildings. So far, it appears that strategy is working.
Sony plans to announce its full fiscal year earnings on May 9.

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