Sony Will Miss Estimates Due to Quake, Hacking

24.05.2011
Citing problems that range from an earthquake's devastation of its factories, to the insidious damage of a gaming-operation hacker, for the March 2012 fiscal year that would be similar to the just completed year's roughly $2.5 billion, and far below the average analysts were predicting.

The electronics maker is set to disclose financial details May 26 in Tokyo, it said, when it also may give more details about fiscal 2012's forecast. The $2.5-billion operating number equates to 200 billion yen. Nine analysts cited by Bloomberg News had been looking for an average of $254.7 billion yen for fiscal 2012 operating income.

Sony said in a press release that its forecast was for net income to turn positive in fiscal 2012, after a 360 billion yen non-cash tax charge led to the biggest annual loss in 16 years this past year. Other comments were contained in also made public on its website.

Trading in Sony shares fell 0.5%, closing at 2,211 yen in Tokyo before the company's announcement. The stock has fallen 24% this year, more than triple the 7.5 percent decline by Japan's benchmark Nikkei 225 Stock Average.

"This may be a conservative forecast, but the operating profit level still looks much lower than expected even if you take the earthquake impact into account," said Kazuharu Miura, a senior analyst at SMBC Nikko Securities Inc., told Bloomberg. "Sony continues face a harsh business environment."