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Profits Plummet 98% at Sony

News, 25 July 2003

Sony’s profits for the three months to June 30 have been all but wiped out as weak consumer demand hit sales.

The electronics colossus posted net income of ¥1.12 billion ($9.4 million; €8.2m; £5.8m) for the quarter, the first of its fiscal year. Although an improvement on the ¥111.1bn loss sustained in the three months to March, profits were down 98% in year-on-year terms. Sales plunged 6.9% to ¥1,600 billion, while operating profits plummeted 67.9% to ¥16.7bn.

Consumer demand was hit by SARS and the poor Japanese economic climate. However, analysts also pointed to Sony’s decision to focus on products in lower-growth areas.

Data sourced from: Financial Times; additional content by WARC staff