Menu
Sony shares sink on earnings revision

Sony shares sink on earnings revision

Investors reacted to Sony's earnings revision by pushing the price of its shares down to levels not seen for 13 years on Friday morning.

The shares closed at ¥1,998, down 13 percent, on the Tokyo market. That's a little off the low point of the morning of ¥1,983 recorded just before 10 a.m.

On Thursday evening Sony revised down its financial outlook for the full year due to lower sales of key products as a result of the slowing economy and the strong Japanese yen. Its net profit outlook for the year from April 2008 to March 2009 was cut by 38 percent to ¥150 billion (US$1.5 billion). And sales for the year were revised down slightly to ¥9 trillion.

Sony blamed the strong Japanese yen, which makes its products more expensive overseas and reduces the value in yen of profits brought back to Japan, and weak demand for key products including Bravia LCD (liquid crystal display) TVs, Cybershot digital cameras and Handycam digital video cameras.

Sony's warning also pulled down the entire consumer electronics sector. Many of Japan's large electronics companies are big exporters and the strengthening yen will likely hit them too.

At market close, Panasonic shares were down 12 percent, Sharp down 14 percent and Toshiba down 9 percent on the day.

Also weighing on the market was the first drop in quarterly sales in seven years at Toyota, which like Sony is a major exporter, and yen hitting decade highs against the dollar.

The entire market as measured by the Nikkei 225 index closed down 812 points, or 10 percent, at 7,649 points.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Meet the winners of the 2020 Reseller News Innovation Awards

Meet the winners of the 2020 Reseller News Innovation Awards

Reseller News honoured the standout players of the New Zealand channel in front of more than 500 technology leaders in Auckland on 21 October, recognising the achievements of top partners, start-ups, vendors, distributors and individuals.

Meet the winners of the 2020 Reseller News Innovation Awards
Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Show Comments