Report: Sony to incur first operating loss in 14 years
Sony Corp was expected to see its first operating loss in 14 years in the fiscal year 2008 that ends in March, a Japanese media report said Tuesday.
The Japanese electronics giant was to incur a loss of about 100 billion yen (1.11 billion dollars) for the year due to a stronger yen and slow sales of flat-screen televisions, the Japanese business daily The Nikkei said.
Sony lowered its projection of the year's operating profit in October from an initial estimate of 520 billion yen to 470 billion yen in July and then to 200 billion yen in October.
As a cost-cutting effort, Sony announced the dismissal of 16,000 of its workers in and outside of Japan as well as closures of electronics plants, reported dpa.
Tuesday's reports affected the Tokyo stock market, which tumbled more than 4 per cent in morning trading.