TOKYO: Sony Corporation has cut its full-year forecast and reported a 93% plunge in fiscal second quarter profits as the cost of its sorry battery recall saga continues to bite into its finances.
The Japan-headquartered company, the world's second biggest consumer electronics maker, says net income fell to ¥2 billion ($16.8m; €13m; £9m) in the three months to September 30, from ¥28.5bn a year earlier.
Annual profit is projected to slide 39%, caused in part by a delay in shipping PlayStation 3 game consoles.
The battery recall was widened to 9.6 million units last month, affecting eight corporate customers including Dell, Apple Computer and Toshiba. Sony's best guess at the cost is ¥51bn.
The slump undermines ceo Howard Stringer's plan to rebuild the company's brand after an unexpected loss in 2003, dubbed the "Sony Shock" by investors.
Data sourced from Bloomberg.com; additional content by WARC staff