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Sony Posts Losses Of $3.2 Billion Following Natural Disasters

The Japanese earthquake and tsunami has caused losses of $3.2 billion for Sony in the company’s recently ended fiscal year, the company warned.

According to The New York Times, the company is the latest major Japanese manufacturer to report massive financial losses to the devastating natural calamity.

The $3.2 billion loss, Sony’s biggest in the last sixteen years, comes at a time when the company is struggling to regain its lost glory in the consumer electronics market, which has taken a hit owning to low consumer demand and market competition.

According to an early earnings statement released by the company, it had suffered significant damage in nine of its manufacturing units in north-eastern Japan. The damage resulted in disrupted supply chain and low local demand.

For the fiscal year ending March 31, the company reported net loss of 260 billion yen or $3.2 billion. Before disaster struck, the company had expected to incur profits of 70 billion yen for the fiscal year.

Sony also mentioned the string of embarrassing hacking attacks it experienced on its networks, informing that the estimated cost of attacks was coming to 14 billion yen, as of now.