Sony warns of bad times ahead, especially where cash is concerned

Sony warns of bad times ahead, especially where cash is concerned

Sony has warned that its financial results for the year ending March will be significantly worse than expected.

The Japanese tech giant now expects to report a full-year loss of 130 billion yen (£770 million), instead of the 11 billion yen (£64 million) deficit forecasted back in February.

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Sony has cited “additional expenses” incurred from exiting its Vaio PC business and “impairment charges” related to its disc manufacturing business as reasons for the poor results.

It has also said it expects its operating income to stand at a measly 26 billion yen (£150 million). This contrasts sharply with the 80 billion yen (£463 million) estimated earlier this year.

Again, Sony says that this is due to extra costs, this time blaming them on its restructuring plans.

The Japanese outfit, however, seems to have been completely caught out by the public’s reaction to the first two incidents, saying that demand for “physical media” had fallen “faster than anticipated”.

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Back in February, Sony made the headlines with the confirmation of the sale of its Vaio business, which had become a bit of a burden in the age of tablets and with the so-called “death of the PC” on the horizon.

Sony is set to reveal its official full-year figures on 14 May.

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