Sony Reports Record $6.4 Billion Loss In 2011

Posted on Apr 10 2012 - 8:08am by Editorial Staff

Sony has just announced (via Reuters) that it’ll report a record $6.4 billion loss for the 2011 financial year. The company has revised its consolidated results forecast for the fiscal year ended March 31, 2012 from that announced on February 2, 2012.

• Sony expects to record an aggregate additional charge of approximately 300 billion yen in tax expense in the fourth quarter of the fiscal year ended March 31, 2012, primarily due to the establishment of valuation allowances against certain deferred tax assets, predominantly in the U.S.

• This additional tax expense is a non-cash charge and does not have any impact on Sony’s consolidated operating income (loss) or cash flow.

• Due to the recording of this additional tax expense, net loss attributable to Sony Corporation’s stockholders is expected to be significantly greater than the February forecast.  As of April 10, 2012, no revisions have been made to consolidated sales, operating income (loss) and net income (loss) before taxes in the forecast announced on February 2, 2012.

Sony already expected $2.9 billion loss from operations, has resulted in today’s grisly revision to the company’s estimated accounts for the year. We already knew Thursday’s corporate strategy meeting was going to be a big deal for Sony when Kazuo Hirai will put up what he is planning to turn the company “not gained fortune” from long time really into “fortune”.

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.