Sony posted a 39.5 per cent fall in quarterly operating profit today, hit by a downturn at its mobile phone business and a firmer yen, but raised its annual outlook to reflect a change in its accounting method.
Sony cut its profit forecast by 17 per cent as lower camera prices caused first-quarter earnings to decline more than analysts estimated.
Sony fell in German trading after the Tokyo-based company said net income dropped 47 per cent to 35 billion yen ($326 million) in the first quarter ended June 30th.
Chief executive officer Howard Stringer (66) delivered the first profit decline in five quarters at Sony, which said it's cautious on demand for Bravia televisions and Cyber-shot cameras as global economic growth slows.
The company follows Canon, the world's biggest camera maker, in posting a drop in profit.
The company projected net income will fall 35 per cent to 240 billion yen in the year ending March 31th, 2009, compared with 290 billion yen forecast in May.
First-quarter sales climbed 0.1 percent to 1.98 trillion yen. Operating profit, or sales left after subtracting the cost of goods sold and administrative expenses, declined 39 per cent to 73.4 billion yen during the period, based on revised figures using a new accounting method.
Sony this quarter began including earnings from affiliates and units such as Sony BMG, Sony Ericsson Mobile Communications Ltd, and S-LCD Corp., its flat-panel operation with Samsung Electronics, at the operating level.
Sony shares lost 5.4 per cent to €24.32 as of 8.55am in Frankfurt trading, after dropping as much as 7.8 per cent. The stock has lost 32 per cent this year, the worst performer among the world's top five flat-panel television makers.