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Sony’s Profit Forecast Misses Estimates on Earthquake Damage

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George Mitchell

Sony Corp. forecast annual profit that fell short of estimates, hurt by costs to repair a factory that was damaged in the Kyushu earthquake, lost sales and slowing demand for smartphone components.Net income will probably decline 46 percent to 80 billion yen $732 million in the 12 months ending March 2017, the Tokyo-based company said in a statement Tuesday.

The shares fell 6.2 percent in German trading.The earthquake erased Sony s previous prediction for its most profitable year in almost two decades, as Chief Executive Officer Kazuo Hirai sought to shift away from consumer electronics.

The company s earning power has strengthened considerably, Yoshida told reporters at a news conference.

The industry is facing its first slowdown since Apple introduced the iPhone in 2007.

Last week, Sony resumed operations at its Kumamoto facility, which was shut down after the factory, clean rooms and equipment were damaged during the April 16 earthquake on the southern island of Kyushu.

The company is looking to cement its lead over Microsoft Corp. s Xbox One and Nintendo Co. s Wii U consoles by launching a virtual-reality headset in 2016.

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George Mitchell
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