The Sony (NYSE: SNE) train wreck continues. The Japanese company has appointed a new CEO and will fire 10,000 workers. But, annual earnings for the year which just ended are much worse than expected. Sony lost $6.4 billion in the period which ended on March 30.
A great deal of the loss was attributed to one time tax issues, but management said little about operations which would lead investors to believe that a turnaround is close by, or even possible. Just anointed CEO CEO Kazuo Hirai made the case the Sony will earn a small profit next year. It is hard to say how.
Sony’s TV screen business continues to be undermined by the commoditization of its products. Sony Ericsson remains a tiny factor in a smartphone industry dominated by Apple (NASDAQ: AAPL) and Samsung. Sony’s gaming system division, with the PS3 as its flagship, does relatively well. So does it studio, from time to time based on the hit or miss success of its films. Sony continues to have nothing to show as it tries to make the case that it can recover.