Sony Financials show slight progress, cut losses in Q2 2012

A small sign of improvement is seen in the latest financial report released by Sony for the second fiscal quarter of this year, ending September 30th.

Sony has managed to deal with the slow first quarter in red ink, and lessened losses to $198 million on $20.5 billion of the entire revenue in the second quarter of 2012. This shows a 1.9 percent rise on its year-on-year profit. While it may not be a dramatic boost, this is still a positive indication that the company is doing better these days, despite prior consecutive losses.

The credit for this year’s gradual success goes to Sony’s Mobile Products & Communications (MP&C) division.

Last trimester, the company suffered a $312 million loss and another $350 million in the same period in 2011.

But ever since the Tokyo-based firm brought Sony Mobile under the MP&C lineup, a year-on-year increase of 112.1 percent is perceived in that division’s trades.

Low-end Market Losses

The Japanese giant obtained a fairly stable growth when it sold 8.8 million smartphones in the second quarter of 2012. However, the recent smartphone demands had also inflicted negative aftermath to other Sony products in the low-end market, including video game hardware, PCs, camcorders and cameras.

PC sales were significantly lower, posting an operating loss of $296 million on that division. Sales from its camera business were also dropping 16.7 percent year-on-year to $2.34 billion.

While the company sees a little progress in image sensors from external consumers, the total Devices division including semi-conductors, and components still posted a year-on-year sales drop of 16.6 percent.

Adding in to Sony’s current losses is the declining sales on its gaming hardware division comprising of PS3 and PSP, with shared 3.5 million units sold this year. It went down from 4.9 million units last year. Overall, it posted a 15.8 percent drop in video gaming hardware sales to $1.9 billion.

The PS Vita however has shown a slight gleam. Sony’s PlayStation Vita and PSP so far, posted a combined 1.6 million units sold this year. While still down from 1.7 million PSP units sold a year ago, it still can be deemed positive, given the PS Vita was still not available on that year.

Sony Music and Sony Pictures also incurred income losses despite the box office success of “The Amazing Spider-Man.”

Overall, Sony has recorded overall profits of $20.1 billion (1.6 trillion yen) during the same period of last year, trimming down its losses by 42.5 percent, from last year’s $337.6 billion (27 billion yen) to $193.8 million (15.5 billion yen) this year.

With its new chief executive officer Kazuo Hirai, experts are curious to see how much he can do more to eradicate the previous losses and lift the company up with positive revenues in the following years.

Business System Reform continues

So far, the company carries on its streamlining efforts to fully recover from the preceding commercial disaster. In conjunction with cost optimization, Sony is also considering cutting 10,000 jobs this year. In fact, a Sony-owned lens plant in Japan is recently closing down. It also moved its mobile HQ from Sweden to Tokyo as part of its recent austerity measures, which seem to be paying off.

Apart from cutting operating costs, the company is also trying to expand into a medical camera technology, as it unveils partnership with Olympus. Sony is purportedly planning to place a 50 billion yen investment in trade of a huge share from Olympus, particularly in the medical business.

Source: Phone Arena