Japanese electronics giant Sony on Thursday cut its net income forecast by 37 per cent for the financial year ending March 31, 2009, citing stronger Yen and intense price competition.
The company now expects a net income of 150 billion Yen for the current fiscal year, while it had forecast a net income of 240 billion Yen in July.
In a statement today, Sony said the guidance for the full year is lowered from the earlier forecast in July, due to significant appreciation in Yen.
“… we expect our results to be lower than the July forecast with operating income decreasing by approximately 130 billion Yen, mainly within the electronics and the game segments…,” the statement added.
In the electronics segment, Sony expects results of businesses such as LCD television, compact digital camera and video camera, to be lower than the previous forecast. The firm has lowered the outlook due to a deterioration in the market environment brought on by the slowing global economy and an intensification of price competition.
Moreover, the electronics giant has slashed its forecast of sales and operating revenue to 9,000 billion Yen for the current financial year.
For the same period, Sony had in July forecast these figures to touch 9,200 billion Yen.
According to the preliminary consolidated results for the second quarter ended September 30, the company posted a net income of 21 billion Yen.
Sony had a net income of 73.7 billion Yen in the same period a year ago.