Sony Reports Q3 Net Profit But Forecasts Annual Loss

Sony on Tuesday said its net profit for the three months to December more than tripled from a year earlier, but confirmed it was on course to incur an annual loss.

The improvement stems mainly from a weak yen, increased sales of smartphones, robust PlayStation console businesses and strong demand for image sensors for cameras, the firm said.

This increase was partially offset by a significant decrease in sales in other operations, it said.

It was "primarily related to Sony's exit from the PC business, and a decrease in sales in the Pictures segment, mainly due to lower Motion Pictures and Television Productions sales," it said.

Sony posted a net profit of JPY 90 billion ($742 million, roughly Rs. 4,661 crores) for the October-December term, the company said in a finalised earnings report.

Sony published provisional estimates in February as final numbers were delayed after a cyber-attack at its Hollywood film unit linked to North Korean satire "The Interview" compromised "a large amount of data".

TheJPY  90-billion profit was slightly up from the JPY 89 billion the group estimated in February, and more than three times bigger than JPY 26.4 billion in the same quarter of 2013.

Sales grew 6.5 percent from a year earlier to 2.56 trillion yen and operating profit more than doubled to JPY 182.1 billion, up from earlier estimated JPY 2.55 trillion and JPY 178.3 billion.

The company said it expected to lose JPY 170 billion in its fiscal year ending on March 31, confirming its February estimate.

It also confirmed its projections of JPY 20 billion in annual operating profit and JPY 8.0 trillion in sales.

The finalised net-loss estimate is down by more than a quarter from a loss of JPY 230 billion the group warned of last year.

Sony has struggled in the consumer electronics business that built its global brand, including losing billions of dollars in televisions over the past decade as fierce competition from lower-cost rivals pummelled the TV subsidiary's finances.