Sony Sees Higher Q3 Profit, Despite Cyber Attack Impact; Lifts FY View

(RTTNews) - Sony Corp. (SON.L, SNE) Wednesday said it expects significant growth in its third-quarter profit with higher sales, despite the estimated impact of the cyber attack in its Pictures business segment. The Japanese consumer electronics maker also lifted its forecast for the full year, now projecting narrower net loss and higher sales than expected earlier. Shares of Sony gained around 3 percent in Tokyo.

The company said it is now disclosing forecasted results for the third quarter ended December 31, due to the estimated impact of the cyber attack in its Pictures business segment, which resulted in a serious disruption of its network and IT infrastructure. Sony plans to announce its actual results for the third quarter by March 31.

As a result of the cyber attack, Sony now projects sales in the Pictures business segment to have decreased 11.7 percent year-on-year to 197.6 billion yen or $1.63 billion. At constant rates, sales are projected to be down 23 percent primarily due to a decrease in sales for Motion Pictures and Television Productions. Operating income is expected to have decreased 21.9 billion yen year-on-year to 2.4 billion yen or $20 million.

Including these, net income attributable to stockholders for the quarter is expected to increase to 89 billion yen or $736 million from last year's 26.4 billion yen. Earnings per share is expected to be 76.17 yen or $0.63 for the quarter, compared to 22.58 yen in the prior year.

Income before income taxes is expected to increase to 164.7 billion yen or $1.36 billion from prior year's 88.3 billion yen. Operating income is expected to increase 89.4 billion yen year-on-year to 178.3 billion yen.

The latest third-quarter results would include an 11.2 billion yen or $93 million write-down of PlayStationVita and PlayStation TV components. In the prior year, a 32.1 billion yen impairment charge related to long-lived assets in the battery business and a 6.2 billion yen write-off of certain PC software titles were recorded.

For the quarter, Sony expects Sales and operating revenue to be 2.56 trillion yen or $21.14 billion, an increase of 6.1 percent from prior year's 2.41 trillion yen.

The company attributed the projected growth in results primarily to the favorable impact of foreign exchange rates, a significant increase in unit sales of smartphones, the strong performance of image sensors as well as PlayStation 4. This increase is expected to be partially offset by the impact of Sony's exit from the PC business, as well as lower sales in the Pictures segment.

On a constant currency basis, sales are expected to decrease by 1 percent year-on-year.

Looking ahead for the year ending March 31, Sony now expects fiscal year attributable net loss of 170 billion yen, operating income of 20 billion yen and sales and operating revenue of 8 trillion yen.

The company previously expected attributable net loss of 230 billion yen, operating loss of 40 billion yen and sales of 7.8 trillion yen.

In the prior year, the company's net loss was 128.4 billion yen, operating income was 26.5 billion yen and sales were 7.77 trillion yen.

Sony believes the impact of the cyber attack on its full- year results will not be material.

In Japan, Sony shares closed today's trading at 2,769 yen, up 2.65 percent.