Recently, Sony had to admit they are heading towards their 4th annual net loss even though they had predicted profits earlier.
The reasons given by the company for loss in profits include flooding in Thailand that totally disrupted camera production, the increasing value of the Yen over the dollar, and the drop in PC and TV prices in the U.S. as well as Europe.
Sony had predicted net profits of 60 billion yen earlier, but changed its prediction to loss of 90 billion yen ($1.1 billion), according to a report (opens in new tab) in Reuters.
Sony is yet another Japanese firm expecting poor quarterly results due to the strengthening of the yen, decline of demand in Europe as well as United States and the Thai floods.
The list of Japanese firms facing loss is long and has quite a few big names like Panasonic, Honda Motor Co., Nomura Holdings and Nintendo Co.Ltd.
The flood in Thailand cut down 25 billion yen which Sony had expected to earn. The same reason also reduced the expected sale of Sony TV by 9 percent to 20 million TV sets, which is the second cut in the current financial year.
With the current loss, Sony is facing its eighth annual loss in its TV division.