Sony has surprised investors by warning it is heading for its fourth straight annual net loss; previously it had forecast a profit.
Its TV business alone is likely to be 1.6 billion euros in the red as demand for sets falls. A surge in the value of the Japanese currency the yen has also hit profits.
Sony has cut its sales forecast for TVs, cameras and DVD players and is looking at a net loss of around eight hundred million euros for the year.
Investors had expected Sony to reduce its profit forecast, but not warn of a swing to massive losses.
Analysts voiced concern about a lack of detail on what Sony intends to do with its TV division as it vowed to bring an end to the losses which have now gone on for eight straight years.
“I am surprised at the extent of the losses and I was anticipating TV restructuring, so I feel let down on both counts,” said Shigeo Sugawara, senior investment manager at Sompo Japan Nipponkoa Asset Management, which owns Sony shares.
“We were focused on what would happen to Sony’s TV division, but I don’t see any drastic restructuring steps, in fact I can’t even see any signs they’ve begun to cut,” he added.