Sony ‘s profits in 2/2016 quarter declined 86% compare to the same period last year

Not only Samsung, 2016 was a grand climacteric of Sony, said business and technology news. Tuesday (1/11), Sony has announced the financial report of the second quarter.  Net profit fell sharply after a disappointing period for the battery business. The pressure due to the yen had gone up.

The financial report in second quarter 2016 of Samsung ending on March 9. The company said operating profit fell from 848 million to 436 million over the same period last year. Sony ‘s net profit was only 46.3 million this quarter, down 86% from the US $ 323.8 million one year ago.

sony-profits-1

Sony said business results goes down this time originating from amounts over $ 318 million loss of the battery business.

Sony’s mobile unit has 33% decrease in sales, with the division netting revenue of $1.8 billion. However, Sony’s decision to focus on the high-end segment has paid off. The mobile business turned a modest profit of $4 million. The mobile unit recorded a $188 million loss during the same period last year.

The Sony’s image sensor division recorded sales of $1.18 billion. Revenues declined by 25%, leading to a massive hit in profits to the tune of 57.7% to $73 million. The game and network services unit have seen profits soar by 126% to $426 million over revenues of $3.2 billion. This includes the PlayStation and digital game sales. In the home entertainment segment, Sony was able to offset a 6.8% decrease in sales by focusing on high-end TVs. They reduced running costs, which led to a profit hike of 85.3% to $197 million.

The company has lowered profit expectations just ahead of the financial report published last Monday. This change was attributed to the decision to sell the battery array Murata Manufacturing Co. production for $ 168.6 million. The deal that the company has completed in April this year.

Game & Network Service

Plate Game & Network Service, including console and PlayStation Network equipment, also saw its sales and operating revenue falling 11.3%. Sony identified the cause is due to the PS4 and PS3 sales have been falling. However, this downward results partly offset by the cost of production as well as reduced PS4 software sales went up – including the distribution of digital content via PlayStation Network.

In addition, the Japanese electronics company said that this result was partly due to the decline in smartphone sales and the image sensor due to a strong policy of Yen recently. The Sony image sensor is sold to foreign partners who are all producing components on the smartphone camera. When the value of the Yen rose sharply, these partners have reduced orders and switch to the other providers.

Yen exchange rate against the dollar has risen sharply this year. If in January 1, 1 USD = 120 yen, the current, 1 USD = 104.9 yen. Therefore, the image sensor array has suffered a loss of over $ 40 million in the quarter from July to September this year.

Not stop here, a devastating earthquake in April caused heavy damage to Sony’s Kumamoto factory located in southern Japan caused the company lost to 462.5 million in the first half of this year.

 

battery business business and technology news financial report Plate Game & Network Service PlayStation Network Samsung Sony

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