Courtesy of Benzinga
Sony Corporation (NYSE: SNE) revised its earnings forecasts down Monday, attributing an annual loss to the impact of the Japanese earthquake and tsunami. Sony now expects a net loss of 260 billion yen, or $3.2 billion, for the fiscal year ending March 31, 2011, falling far short of a previously estimated profit of 70 billion yen.
In addition to “idle facility costs at manufacturing sites and an incremental provision for life insurance policy reserves,” Sony expects “to incur incremental expenses, including restoration costs, directly related to the damages caused by the disaster.”
Notably, “Sony will record a non-cash charge of approximately 360 billion yen in the fourth quarter of the fiscal year ended March 31, 2011 to establish a valuation allowance against certain deferred tax assets in Japan. This is expected to result in a net loss attributable to Sony Corporation’s stockholders, a substantial decrease from the February forecast.”
Sony has also been affected by recent shutdown of its online PlatStation network after hackers broke into the company’s network and stole customer data. It is unknown whether the crooks stole Credit Card and other personal information.
Sony said “known costs” for the situation were estimated at 14 billion yen. The amount is likely higher when including the loss of reputation, and consequently, a possible sales dip.
The details of the consolidated results forecast for the fiscal year ending March 31, 2012 is scheduled to be announced on May 26, 2011.
Sony is engaged in the development, design, manufacture, and sale of various kinds of electronic equipment, instruments, and devices for consumer, professional and industrial markets, as well as game consoles and software.
Shares of Sony closed lower by $0.17 on Friday, to $27.05.
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