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MUMBAI: Japanese consumer electronics conglomerate Sony has
reported better than expected results for the first-quarter
ended 30 June 2006.
Net income was ¥32.3 billion with a loss of ¥7.3
billion a year earlier. Media reports indicate that analysts
had expected the company to report lower income. Sony got
a boost from sales of its Bravia brand LCD televisions and
Cybershot digital cameras.
For the full year to next March, Sony revised up its operating
profit forecast by 30 per cent to 130 billion yen as it started
booking patent-related income as recurring revenue rather
than miscellaneous income. It kept unchanged its net profit
forecast of 130 billion yen.
Sales rose 11 per cent to ¥1.74 trillion from a year
earlier. Operating profit, or sales minus the cost of goods
sold and administrative expenses, was ¥27 billion for
the period, compared with a restated ¥6.6 billion loss
a year earlier.
Profit from the electronics division, which accounts for
more than 70 per cent of the company's sales, was ¥47.4
billion, from a loss of ¥26.7 billion a year earlier.
Sales of electronics including Bravia TVs, Cyber-shot cameras
and Vaio personal computers increased by 14 per cent to ¥1.28
trillion.
Sales of its TVs rose by 75 per cent to ¥262 billion.
Sony joins rivals Sharp and Matsushita Electric Industrial
in reporting higher profit because of TV sales.
It
looks like Sony CEO Howard Stringer's cost cutting measures
are starting to pay dividends. In September Stringer had outlined
a plan to axe 10,000 jobs and shut down 11 factories. Stringer
also stopped paying 44 retired executives, sold two corporate
jets and some retail businesses, including a cosmetics maker
and a restaurant chain.
On
the film front Sony benfited from The Da Vinci Code.
This helped the company increase sales by 42 per cent in the
quarter. However, higher marketing costs meant that the film
division suffered an overall loss.
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