LCD TVs, PCs, PS3 Business Drive Sony First-Quarter Profit
Sony swung to a $753 million operating profit in its first quarter, ended June 30, based on the yen exchange that day, from a significant operating loss a year earlier. The consumer, professional and devices (CPD) and the networked products and service (NPD) businesses contributed to the improvement, the company said. Sales in CPD were up 7 percent to $9.9 billion mainly due to unit sales of LCD TVs, Sony said. Despite a 32 percent rise in sales to $3.6 billion for NPS, which includes Vaio PCs and the videogame business, the segment reported an operating loss of $43 million. That was blamed on unfavorable foreign-exchange rates and an increase in sales and administrative expenses from increased sales. Revenue rose from increased unit sales of PCs and cost reductions on PS3 hardware, Sony said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
Sony raised its forecast from one in May for consolidated operating income for the fiscal year through March 2011, based on increased expectations for TV sales. “First quarter operating results in the CPD segment significantly exceeded expectations, primarily due to improved results from televisions,” the company said. Sony said it downgraded its forecast operating results for NPS because of the increased value of the yen against the euro.
Q1 television sales were up 23 percent to $3.2 billion and semiconductor sales up 33 percent to $1 billion. Revenue dropped 6 percent in audio/video products to $1.07 billion and 4.5 percent in digital imaging products to $1.9 billion. Component sales were down 4 percent to $1.2 billion, and professional services revenue was up 11 percent to $761 million. In NPS, Sony posted $1.6 billion revenue, a 28.6 percent increase, on games sales, and PC sales were up 31 percent to $1.9 billion.
Total sales were down 3 percent in the U.S. to $4 billion, down 7.8 percent in Japan and up 2.3 percent in Europe. Sales elsewhere were up 25 percent to $5.8 billion. -- Rebecca Day