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Sony Reports a £4 Billion Net Loss for the Past Year

Sony predicted in February that the company would exit 011 with losses, but the sum was almost double what was expected. Sony is showing real signs of failing to improve in a constantly-changing market.

The Japanese electronics company has now scored its biggest annual net loss, with revenue dropping up to £4 ($6.4) billion for 2011. This marks the company's fourth straight year of losses and even rough expectations released a couple of months ago by Sony, predicting a $2 billion drop, were far from the truth.

Chief Financial Officer Masaru Kato briefly stated in Tokyo on Tuesday that the company has several reasons for its poor results. Amongst them the weak demand in television products and also the growing strength of the competition, which can be found in rivals such as Samsung and Apple.

Additional expenses were attributed to taxes the company had to pay to some markets, with most of the sum going towards the U.S.

Kaz Hirai, Sony's new CEO, is expected to release a new plan for approaching customers in the future, one that would hopefully revive revenue Thanks to this, the company is expected to come on profit by the end of this fiscal year - March 2013 - with an operational profit of $2.2 billion.

Speaking of predictions, Sony is also rumoured to have fired almost 6 per cent of its staff, a percentage that numbers almost 10,000 employees.

Source: Sony (opens in new tab) (PDF file)