Friday, October 30, 2009

Sony Posts Loss For 4th Straight Quarter

. Friday, October 30, 2009

By stockOzone team

Sony Corp posted a loss for a fourth consecutive quarter, hit by sluggish cellphone sales and as it cut prices of its PlayStation 3 game console, but it narrowed its full-year loss forecast.

Sony swung to an operating loss of 32.6 billion yen ($358 million) in July-September from a profit of 11.05 billion yen a year earlier, but beating the consensus estimate of a 59.2 billion yen loss.

Following are initial reactions from analysts:

LEE HAK-MOO, ANALYST, MIRAE ASSET SECURITIES, SEOUL

"Japanese TV makers such as Sony are suffering from lack of competitiveness in panels, while the strong yen is dealing a blow. They don't have the kind of leadership and cooperation in advanced panels such as light emitting diode-backlight models as Korean companies enjoy."

"In the global IT sector, the recovery next year will be led by sectors that suffered most this year, such as PCs. The strongest recovery will be in memory chips. LCD TVs have done well this year and its performance in 2010 won't stand out so much."

MITSUSHIGE AKINO, CHIEF FUND MANAGER, ICHIYOSHI INVESTMENT MANAGEMENT IN TOKYO

"My first impression is that the revision was a bit on the cautious side. In April-June and July-September, there was a sense that external conditions improved, and the euro didn't fall that much against the yen, so I thought they could have raised their forecasts a bit more.

"I think the company is being cautious. There are a lot of unknown factors such as currencies, and the games business, especially in North America. If these numbers (new forecasts) are based on a cautious view by the company, then they're not so bad.

"But the share price has risen already so it will probably be difficult to expect a further push.

"I think there's plenty of room (for Sony to beat its forecasts)," he said, pointing to the possibility of a yen weakening.

Disclosure: Author does not own any of the stocks discussed here.





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