Sony Q2 Loss Widens, But Sales Climb; Backs Full Year View

(RTTNews) - Japanese consumer electronics maker Sony Corp. (SON.L, SNE) Friday said the second-quarter net loss widened from last year, as the company incurred a hefty impairment charge in the quarter.

Meanwhile, sales grew 7.2 percent due to a strong contribution from the PlayStation 4 and good performance from image sensors, apart from the favorable impact of foreign exchange rates. Further, the company backed its full-year forecast issued in September.

Net loss attributable to the company's stock holders widened to 135.97 billion yen from last year's 19.63 billion yen. Loss per share was 124.32 yen compared with 19.25 yen in the prior year.

Sony reported an operating loss of 85.6 billion yen, versus operating income of 13.9 billion yen in the same quarter last year, primarily due to a 176.0 billion yen impairment of goodwill recorded in the Mobile Communications or MC segment.

Sales and operating revenue grew to 1.902 trillion yen from 1.774 trillion yen in the prior year.

Segment-wise, sales improved 1.2 percent in the MC segment to 308.4 billion yen, primarily due to favorable currency impact.

In Game & Network Services or G&NS segment, sales jumped 83.2 percent to 309.5 billion yen, primarily due to PlayStation 4.

For Imaging Products & Solutions or IP&S, sales edged up 1.8 percent to 178.6 billion yen, benefiting from an improvement in the product mix of digital cameras due to a shift to high value-added models, even as there was a sharp decrease in unit sales of digital cameras.

Home Entertainment & Sound or HE&S segment reported sales growth of 7 percent at 282.4 billion yen, amid a significant increase in sales of televisions.

In the Devices segment, sales climbed 23.1 percent to 247.7 billion yen, as sales of image sensors and camera modules increased, in the backdrop of higher demand for mobile products.

Sony Pictures saw a 2.4 percent growth in revenue, and Sony Music reported a 1.5 percent growth.

Financial Services revenue was 268.19 billion yen from 242.5 billion yen, primarily due to an increase in revenue at Sony Life.

Sony said the forecast for consolidated results for the fiscal year ending March 31, 2015, as announced on September 17, remains unchanged.

Net loss attributable to the company's stock holders is still estimated to be 230 billion yen and sales and operating revenue are expected to be 7.80 trillion yen. Operating loss also is expected to be 40 billion yen.

Further, Sony said in MC segment, sales are expected to be below the July forecast due to an expected decrease in the annual unit sales of smartphones mainly in China.

The stock closed up 0.8 percent in Tokyo on Friday at 2,072 yen.