Sony reported its group net profit for the past year fell 23.4 per cent due to large restructuring costs, a decline in sales of game software and hardware, and the strong yen.
But the world's second-largest consumer electronics maker forecast net profit would quadruple this year to 100 billion yen thanks to a big drop in restructuring charges and an expected improvement in gross profit margins.
The company plans to quit unprofitable businesses and boost earnings in more promising areas.
For the past year to March, net profit fell to 88.5 billion yen or 95.97 yen per share, from 115.5 billion yen or 125.74 yen a share the previous year.
The fall was widely expected and the figures were in line with the company's own forecasts.
Pre-tax profit fell 41.8 per cent to 144.1 billion yen, on sales of 7.50 trillion yen, up just 0.3 per cent.
Without the impact of currency fluctuations, sales would have gained 3 per cent, Sony said.
For the year to March 2005, the company forecast net profit of 100 billion yen and pre-tax profit of 160 billion yen on sales of 7.55 trillion yen.