Sony upbeat on profit, Ricoh cutting jobs

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Sony upbeat on profit, Ricoh cutting jobs

Sony upbeat on profit, Ricoh cutting jobs
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Sony has announced a 2.2 billion euro net loss for the financial year just ended, but is predicting it will make a profit for the next 12 months.

It is struggling with a series of network security breaches and the aftermath of the March earthquake.

Sony predicted an 689 million euro net profit for the year that started April 1, but some analysts said that was optimistic.

“Looking at their forecast, it appears Sony is expecting a recovery in the latter half of the year, which is a bullish forecast, but there’s a lot of uncertainty and there is a risk they will come in below that expectation,” said Koji Takeuchi, senior economist at Mizuho Research Institute. “It is still unclear what the financial burden of the security breach will be,” he added.

The electronics and entertainment conglomerate is reeling from one of the biggest ever internet security breaches, which forced it to close its PlayStation videogames network for nearly a month after data on tens of millions of user accounts was leaked.

On Tuesday Sony said additional websites in four countries had also been hacked. Among the break-ins, personal information for 8,500 people was leaked from its Greek Sony Music Entertainment website.

At the same time Japanese photocopier and printer maker Ricoh said it will cut nearly 10 percent of its staff to try to boost profits.

The restructuring includes slashing 10,000 jobs from its global workforce of 109,000, cutting unprofitable products and consolidating factories.

Ricoh has long promised but failed to deliver cost cuts and needs to fend off competition from firms such as Xerox and Canon.

Moody’s Investor Services has said Japanese companies could permanently lose global market share because of supply chain disruptions from the March 11 disasters.