Monday, October 31, 2016

Sony cuts annual profit outlook by 10%

Sony has cut its annual profit forecast by 10% due to one-off costs from the sale of its battery business.
The Japanese electronics giant will sell the unit to Murata Manufacturing and said it expected to book impairment charges of 33bn yen linked to the sale.
The firm now expects operating profits of 270bn yen ($2.6bn; £2.1bn) for the year ending March, 30bn yen lower than its previous forecast.
Sony is scheduled to release its first-half results on Tuesday.
The announcement was made after markets had closed in Tokyo. During the trading session its shares had closed 1.9% higher.

The sale of the battery unit had been announced earlier this year, but on Monday Sony and Murata said they had signed a binding agreement.
The decision to sell the unit is part of a larger restructuring drive to focus on the company's core profitable units of video-games, entertainment and camera sensors.
In July, Sony cut its sales forecast for the full year by almost 9% to 7.4tn yen.
Sony has been hit by an increase in the value of the Japanese yen, which makes its overseas sales less valuable when they are converted back into its local currency.
It has also seen sales fall at its division which makes smartphones, its film and TV production unit and its computer games division.

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