Sony has just posted its quarter three results of its 2011 fiscal year and as expected, the news is not great. Sony posted an operating loss of $1.2 billion and net loss of $2 billion on revenue of $23.37 billion. Sales were 1,822.9 billion yen (USD $23,370 million), a decrease of 17.4% compared to the same quarter of the previous fiscal year (YOY) primarily due to the impact of the floods in Thailand which began in October 2011, deterioration in market conditions in developed countries, and unfavorable foreign exchange rates. The $23.37 billion in revenue represented a 17.4 percent decrease year over year.
Operating loss of 91.7 billion yen (USD $ 1,176 million) was recorded, compared to operating income of 137.5 billion yen in the same quarter of the previous fiscal year. This was primarily due to a significant deterioration in equity in net income (loss) of affiliated companies, deterioration in the cost of sales ratio, and a decrease in gross profit from significantly lower sales.
Sony, which yesterday named Kazuo Hirai as chief executive officer replacing Howard Stringer starting April 1, posted a third-quarter net loss of 159 billion yen, compared with the 43 billion-yen average loss. Sales in consumer products decreased 24% YOY, mainly hit by terrible performance from Sony’s television division. The decreases weren’t limited to consumer products, Sony’s Pictures and Sony Music each barely eked out a profit, while Sony Ericsson lost money.