President of Sony Corporation (ADR) (NYSE:SNE) Kazuo Hirai is depending on selling real estate to make the firm’s first profit in 5 years while he fights back to find products capable to compete with Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co. devices.
Japan’s consumer-electronics firm unveiled straight eighth quarter loss and once again reduces sales targets for TVs, gaming devices and compact cameras. It restated an estimate for full-year net income of 20B yen ($215 million), comprising gains from the $1.1B sale of a New York building.
An analyst at Goldman Sachs Group Inc., led by Takashi Watanabe, stated in a note today that Sony’s earnings underline the obscurity in the electronics market. They stay careful allowing for the shrinking market for Sony’s predictable products and tougher competition. They reiterated a “Neutral” rating on stock.
While Hirai made growth toward spinning an unprofitable TV business even as Sony declared a quarterly net loss of 10.8B yen on slow sales of liquid-crystal display sets, digital cameras as well as personal computers. His recovery plan featuring 10,000 job cuts has not delivered the similar results as that of Panasonic Corp. President Kazuhiro Tsuga, whose firm declared net income of 61 billion yen.
A fund manager at Bay view Asset Management Co., Ichiro Takamatsu stated that Sony’s earnings are unacceptable, which oversees around 150B yen. It hasn’t efficient its business methodically sufficient.
Sony Corp. shares plunged the most in 4 years following declaration of an eighth consecutive quarter of losses, a disagreeable surprise for investors who own loan money to purchase the stock on bets the lower yen would help turn around Japan’s largest exporter of consumer electronics.
The president of Fukoku Capital Management Inc, Yuuki Sakurai stated that they need to observe how these products execute before investing money back in Sony.
He added that Sony remain has not revealed the way through it will fight with Samsung or Apple (AAPL).