Sony Cuts FY ‘09 Forecast On Currency, Macro Weakness

In the latest sign of trouble in the consumer electronics sector, Sony (SNE) today cuts its financial forecast for the fiscal year ending March 2009. The company trimmed its sales forecast for the year to 9 trillion yen, from 9.2 trillion, which would be up 1% from fiscal 2008. Sony chopped its net income forecast for the year by 38%, to 150 billion yen from 240 billion; that would be down 59% from the FY ‘08 level. Sony said the reduced forecast reflects a change in foreign currency exchange rates, as well as slowing demand in certain parts of its electronics business, including LCD televisions, compact digital cameras and video cameras, due to the slowing global economy and intensifying price competition. Sony also said it is reducing expectations for its financial services segment due to a deterioration in net valuation gains from convertible bonds and an an impairment loss on equity securities holdings due to the decline in the Japanese stock market. Sony this morning is down ... (link)